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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>As filed with the Securities and Exchange Commission on
    February&#160;11, 2010.</B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Registration
    <FONT style="white-space: nowrap">No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
</DIV>

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<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION<BR>
    </FONT><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">Form&#160;S-1</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">REGISTRATION
    STATEMENT</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">UNDER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">THE SECURITIES ACT OF
    1933</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">BANK OF COMMERCE
    HOLDINGS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Exact name of registrant as
    specified in its charter)</FONT></I>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

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    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
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    <B>California</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>6022</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>94-2823865</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(State or other jurisdiction
    of<BR>
    incorporation or organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(I.R.S. Employer<BR>
    Identification No.) </FONT></I>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1951 Churn Creek Road Redding, California 96002,
    <FONT style="white-space: nowrap">(530)&#160;722-3939</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Address, including zip code,
    and telephone number, including area code, of Registrants&#146;
    principal executive offices)</FONT></I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Patrick J. Moty</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>President and Chief Executive Officer</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Bank of Commerce Holdings</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>1951 Churn Creek Road</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Redding, California 96002</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="white-space: nowrap">(530)&#160;722-3953</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Copies to:</I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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<TD align="center" valign="top">
    <B>Bruce Dravis<BR>
    Downey Brand LLP<BR>
    621 Capitol Mall<BR>
    18<SUP style="font-size: 85%; vertical-align: top">th</SUP>

    Floor<BR>
    Sacramento, California 95814<BR>
    <FONT style="white-space: nowrap">(916)&#160;444-1000</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>Stephen M. Klein<BR>
    Graham &#038; Dunn PC<BR>
    Pier 70<BR>
    2801 Alaskan Way&#160;&#151; Suite 300<BR>
    Seattle, Washington 98121<BR>
    (206) 624-8300 </B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale of the
    securities to the public:</B>&#160;&#160; As soon as practicable
    after this Registration Statement becomes effective
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule&#160;415 under the Securities Act of 1933, check the
    following
    box.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act,
    please check the following box and list the Securities Act
    registration statement number of the earlier effective
    registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    &#147;large accelerated filer,&#148; &#147;accelerated
    filer&#148; and &#147;smaller reporting company&#148; in
    <FONT style="white-space: nowrap">Rule&#160;12b-2</FONT>
    of the Exchange Act. (Check one):
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="23%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="35%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
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<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Large&#160;accelerated&#160;filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Accelerated&#160;filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Non-accelerated&#160;filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Smaller&#160;reporting&#160;company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    (Do&#160;not&#160;check&#160;if&#160;a&#160;smaller&#160;reporting&#160;company)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
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<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Each Class of<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Aggregate Offering<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Registration<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Securities to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price(1)(2)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Fee</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common Stock, no par value per share
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    34,500,000
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    2,460.00
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Estimated solely for the purpose of determining the amount of
    the registration fee in accordance with Rule&#160;457(o) under
    the Securities Act of 1933, as amended.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes offering price of shares that the underwriters have the
    option to purchase to cover over-allotments, if any.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act of 1933, as amended, or until this
    Registration Statement shall become effective on such date as
    the Commission, acting pursuant to said Section&#160;8(a), may
    determine.</B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>
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<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<FONT style="font-size: 8pt; font-family: Arial, Helvetica; color: #E8112D">The
information in this prospectus is not complete and may be
changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these
securities and it is not soliciting an offer to buy these
securities in any jurisdiction where the offer or sale is not
permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="color: #E8112D">SUBJECT TO COMPLETION, DATED
    FEBRUARY 11, 2010</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PRELIMINARY PROSPECTUS</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="f54634orf5463401.gif" alt="(BANK OF COMMERCE HOLDINGS LOGO)"><B><FONT style="font-size: 14pt">
    </FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are
    offering&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock, no par value per share. Our common stock is
    traded on the NASDAQ Global Market under the symbol
    &#147;BOCH.&#148; On February&#160;9, 2010, the last reported
    sale price of our common stock on the NASDAQ Global Market was
    $5.24 per share.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>These shares of common stock are not savings accounts,
    deposits, or other obligations of our bank subsidiary or any of
    our non-bank subsidiaries and are not insured by the Federal
    Deposit Insurance Corporation or any other governmental
    agency.</I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investing in our common stock involves risks. See &#147;RISK
    FACTORS&#148; beginning on page&#160;8 to read about factors you
    should consider before buying our common stock.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
&nbsp;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discounts and commissions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds to Bank of Commerce Holdings (before expenses)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters also may purchase up to an
    additional&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our common stock within 30&#160;days of the date of this
    prospectus to cover over-allotments, if any.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters expect to deliver the common stock in
    book-entry form only, through the facilities of The Depository
    Trust&#160;Company, against payment on or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Howe
    Barnes Hoefer&#160;&#038; Arnett</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The date of this prospectus
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 24pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Bank of
    Commerce Holdings</FONT></B>
</DIV>
<div style="width: 30%; position: relative; float: left">
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="f54634orf5463402.gif" alt="(BANK OF COMMERCE REDDING LOGO)"><FONT style="font-size: 24pt">
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Churn Creek Road</I>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Placer Street</I>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Buenaventura Boulevard</I>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="f54634orf5463403.gif" alt="(BANK OF COMMERCE ROSEVILLE LOGO)">
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Eureka Road</I>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
&#160;
</div>
<div style="width: 45%; position: relative; float: right">

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="f54634orf5463404.gif" alt="(MAP)">
</DIV>
</div>
<br clear="all"><!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
    STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>ABOUT THIS PROSPECTUS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    iii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    iii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>PROSPECTUS SUMMARY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>SUMMARY SELECTED CONSOLIDATED FINANCIAL
    INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>RISK FACTORS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>USE OF PROCEEDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>CAPITALIZATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>DIVIDEND POLICY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>PRICE RANGE OF COMMON STOCK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>DESCRIPTION OF CAPITAL STOCK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>UNDERWRITING</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>LEGAL MATTERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="f54634orexv23w1.htm">EX-23.1</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
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</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus and the documents incorporated by reference
    contain certain forward-looking statements within the meaning of
    Section&#160;27A of the Securities Act of 1933, as amended (the
    &#147;Securities Act&#148;), and Section&#160;21E of the
    Securities Exchange Act of 1934, as amended, (the &#147;Exchange
    Act&#148;), which are intended to be covered by the safe harbors
    created thereby. These forward-looking statements represent
    plans, estimates, objectives, goals, guidelines, expectations,
    intentions, projections and statements of our beliefs concerning
    future events, business plans, objectives, expected operating
    results and the assumptions upon which those statements are
    based. Forward-looking statements include, without limitation,
    any statement that may predict, forecast, indicate or imply
    future results, performance or achievements, and are typically
    identified with words such as &#147;may,&#148;
    &#147;could,&#148; &#147;should,&#148; &#147;will,&#148;
    &#147;would,&#148; &#147;believe,&#148; &#147;anticipate,&#148;
    &#147;estimate,&#148; &#147;expect,&#148; &#147;intend,&#148;
    &#147;plan,&#148; or words or phrases of similar meaning. We
    caution that the forward-looking statements are based largely on
    our expectations and are subject to a number of known and
    unknown risks and uncertainties that are subject to change based
    on factors which are, in many instances, beyond our control.
    Actual results, performance or achievements could differ
    materially from those contemplated, expressed, or implied by the
    forward-looking statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following factors, among others, could cause our actual
    results to differ materially from those expressed in such
    forward-looking statements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The strength of the United States economy in general and the
    strength of the local economies in which we conduct operations,
    the duration of current financial and economic volatility and
    decline and actions taken by the United States Congress and
    governmental agencies, including the United States Department of
    the Treasury (the &#147;Treasury&#148;), to deal with challenges
    to the United States financial system;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The effects of, and changes in, trade, monetary and fiscal
    policies and laws, including interest rate policies of the Board
    of Governors of the Federal Reserve System, or the Federal
    Reserve Board;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Inflation, interest rate, market and monetary fluctuations, the
    risks presented by a continued economic recession, which could
    adversely affect credit quality, collateral values, investment
    values and liquidity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Changes in the financial performance
    <FONT style="white-space: nowrap">and/or</FONT>
    condition of our borrowers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Changes in consumer spending, borrowing and savings habits;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Changes in the level of our nonperforming assets and charge-offs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Oversupply of inventory and continued deterioration in values of
    real estate in California and the United States generally, both
    residential and commercial;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Changes in securities markets, public debt markets and other
    capital markets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Possible
    <FONT style="white-space: nowrap">other-than-temporary</FONT>
    impairments of securities held by us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The timely development of competitive new products and services
    and the acceptance of these products and services by new and
    existing customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The willingness of customers to substitute competitors&#146;
    products and services for our products and services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The impact of changes in financial services policies, laws and
    regulations, including laws, regulations and policies concerning
    taxes, banking, securities and insurance, and the application
    thereof by regulatory bodies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Technological changes could expose us to new risks, including
    potential systems failures or fraud;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The timing and effect of acquisitions we may make, if any,
    including, without limitation, the failure to achieve the
    expected revenue growth
    <FONT style="white-space: nowrap">and/or</FONT>
    expense savings from such acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Possible impairment of goodwill that has been recorded in
    connection with acquisitions which may have a material adverse
    impact on our earnings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The effect of changes in accounting policies and practices, as
    may be adopted from
    <FONT style="white-space: nowrap">time-to-time</FONT>
    by bank regulatory agencies, the Securities and Exchange
    Commission (the &#147;SEC&#148;), the Public Company
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Accounting Oversight Board, the Financial Accounting Standards
    Board or other accounting standards setters;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The impact of current governmental efforts to restructure the
    United States financial regulatory system, including changes in
    the scope and cost of FDIC insurance and other coverages and
    changes in the Treasury&#146;s Capital Purchase Program;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Ability to attract deposits and other sources of liquidity at
    acceptable costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Changes in the competitive environment among financial and bank
    holding companies and other financial service providers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The loss of critical personnel and the challenge of hiring
    qualified personnel at reasonable compensation levels;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Geopolitical conditions, including acts or threats of war or
    terrorism, actions taken by the United States or other
    governments in response to acts or threats of war or terrorism
    <FONT style="white-space: nowrap">and/or</FONT>
    military conflicts, which could impact business and economic
    conditions in the United States and abroad;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Unanticipated regulatory or judicial proceedings;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our ability to manage the risks involved in the foregoing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If our assumptions regarding one or more of the factors
    affecting our forward-looking information and statements proves
    incorrect, then our actual results, performance or achievements
    could differ materially from those expressed in, or implied by,
    forward-looking information and statements contained in this
    prospectus and in the information incorporated by reference in
    this prospectus. Therefore, we caution you not to place undue
    reliance on our forward-looking information and statements. We
    will not update the forward-looking statements to reflect actual
    results or changes in the factors affecting the forward-looking
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Forward-looking statements should not be viewed as predictions,
    and should not be the primary basis upon which investors
    evaluate us. Any investor in our common stock should consider
    all risks and uncertainties set forth under &#147;RISK
    FACTORS&#148; and disclosed in our filings with the SEC
    described below under the heading &#147;WHERE YOU CAN FIND MORE
    INFORMATION,&#148; all of which is accessible on the SEC&#146;s
    website at <I>www.sec.gov.</I>
</DIV>

<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely only on the information contained or
    incorporated by reference in this prospectus. We have not, and
    the underwriters have not, authorized any person to provide you
    with different or inconsistent information. If anyone provides
    you with different or inconsistent information, you should not
    rely on it. We are not, and the underwriters are not, making an
    offer to sell these securities in any jurisdiction where the
    offer or sale is not permitted. You should assume that the
    information appearing in this prospectus and the documents
    incorporated by reference is accurate only as of their
    respective dates. Our business, financial condition, results of
    operations and prospects may have changed since such dates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this prospectus, &#147;Bank of Commerce Holdings,&#148;
    &#147;the Company,&#148; &#147;we,&#148; &#147;our,&#148;
    &#147;ours,&#148; and &#147;us&#148; refer to Bank of Commerce
    Holdings, which is a financial holding company headquartered in
    Redding, California, and its subsidiaries on a consolidated
    basis, unless the context otherwise requires. References to the
    &#147;Bank&#148; mean Redding Bank of Commerce, which is a
    California-chartered commercial bank and our wholly-owned
    banking subsidiary.
</DIV>

<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports, proxy statements
    and other information with the SEC. You may read and copy any
    document we file at the SEC&#146;s Public Reference Room at
    100&#160;F&#160;Street, N.E., Washington,&#160;D.C.&#160;20549.
    You may obtain information on the operation of the Public
    Reference Room by calling the SEC
    <FONT style="white-space: nowrap">at&#160;1-800-SEC-0330.</FONT>
    The SEC also maintains an Internet site that contains reports,
    proxy and information statements, and other information
    regarding issuers that file electronically with the SEC. The
    Internet address of the SEC&#146;s website is <I>www.sec.gov.
    </I>Such reports and other information concerning us also can be
    retrieved by accessing
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    our website at <I>www.bankofcommerceholdings.com </I>or
    <I>www.reddingbankofcommerce.com. </I>Information on our
    websites is not part of this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus, which is a part of a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    that we have filed with the SEC under the Securities Act, omits
    certain information set forth in the registration statement.
    Accordingly, for further information, you should refer to the
    registration statement and its exhibits on file with the SEC.
    Furthermore, statements contained in this prospectus concerning
    any document filed as an exhibit are not necessarily complete
    and, in each instance, we refer you to the copy of such document
    filed as an exhibit to the registration statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows us to incorporate by reference information we
    file with it, which means that we can disclose important
    information to you by referring you to other documents. The
    information incorporated by reference is considered to be part
    of this prospectus. We incorporate by reference the documents
    listed below, except to the extent that any information
    contained in such filings are deemed &#147;furnished&#148; in
    accordance with SEC rules:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008, filed with the SEC on
    March&#160;13, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Definitive Proxy Statement on Schedule&#160;14A filed with
    the SEC on March&#160;24, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2009, filed with the SEC on
    May&#160;1, 2009, for the quarter ended June&#160;30, 2009,
    filed with the SEC on August&#160;14, 2009, as amended by
    Amendment No.&#160;1 on Form&#160;10-Q/A filed with the SEC on
    February&#160;9, 2010, and for the quarter ended
    September&#160;30, 2009, filed with the SEC on November&#160;6,
    2009, as amended by Amendment No.&#160;1 on Form&#160;10-Q/A
    filed with the SEC on February&#160;9, 2010;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on November&#160;5, 2009, December&#160;16,
    2009, January&#160;29, 2010, and February&#160;9, 2010.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Upon request, we will provide to each person, including any
    beneficial owner to whom a prospectus is delivered, a copy of
    any or all of the reports or documents that have been
    incorporated by reference in the prospectus contained in the
    registration statement, but not delivered with the prospectus.
    You may request a copy of these filings (other than an exhibit
    to a filing unless that exhibit is specifically incorporated by
    reference into that filing) at no cost, by writing to or
    telephoning us at the following address and telephone number:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Bank of
    Commerce Holdings<BR>
    1951 Churn Creek Road<BR>
    Redding, California 96002<BR>
    Attention: Samuel D. Jimenez, Chief Financial Officer<BR>
    Telephone:
    <FONT style="white-space: nowrap">(530)&#160;722-3952</FONT>
    </FONT>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iv
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary highlights some information contained elsewhere
    or incorporated by reference in this prospectus and it may not
    contain all of the information that is important to you in
    making an investment decision. To understand the terms of the
    common stock offered by this prospectus, you should read this
    prospectus as well as the information to which we refer you and
    the information incorporated by reference in this prospectus.
    You should carefully read the section titled &#147;RISK
    FACTORS&#148; in this prospectus to determine whether an
    investment in our common stock is appropriate for you.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">About
    Bank of Commerce Holdings</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bank of Commerce Holdings is a corporation organized under the
    laws of California and a financial holding company registered
    under the Bank Holding Company Act of 1956, as amended. Our
    principal business is to serve as a holding company for Redding
    Bank of Commerce, which operates under two separate names
    (Redding Bank of
    Commerce<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>

    and Roseville Bank of
    Commerce<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>)

    and for Bank of Commerce
    Mortgage<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>,

    our majority-owned mortgage brokerage subsidiary. We also have
    two unconsolidated subsidiaries, Bank of Commerce Holdings Trust
    and Bank of Commerce Holdings Trust&#160;II, which were
    organized in connection with our prior issuances of trust
    preferred securities. Our common stock is traded on the NASDAQ
    Global Market under the symbol &#147;BOCH.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank commenced banking operations in 1982 and currently
    operates four full service facilities in two diverse markets in
    Northern California. We are proud of the Bank&#146;s reputation
    as one of Northern California&#146;s premier banks for business.
    During 2007, we re-branded the Bank as &#147;Bank of
    Commerce<FONT style="font-family: Symbol; font-variant: normal">&#239;</FONT>
    <I>Bank of
    Choice</I><SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>&#148;

    reflecting a renewed commitment to making the Bank the choice
    for local businesses with a fresh focus on family and personal
    finances. We provide a wide range of financial services and
    products for business and consumer banking. The services offered
    by the Bank include those traditionally offered by banks of
    similar size in California, such as free checking,
    interest-bearing checking and savings accounts, money market
    deposit accounts, sweep arrangements, commercial, construction
    and term loans, travelers checks, safe deposit boxes, collection
    services and electronic banking activities. The Bank is an
    affiliate of LPL Financial and offers wealth management services
    through that affiliation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to enhance our noninterest income, in May 2009 we
    acquired 51.0% of the capital stock of Simonich Corporation, a
    successful state of the art mortgage broker of residential real
    estate loans headquartered in San&#160;Ramon, California, with
    ten offices in three different states and licenses in
    California, Oregon, Washington, Idaho and Colorado. The business
    was formed in 1993 and funds over $1.0&#160;billion of first
    mortgages annually. The acquisition allows us to penetrate into
    the mortgage brokerage services market at our current Bank
    locations and to share in the income on mortgage transactions
    nationwide. On July&#160;1, 2009 we changed the mortgage
    company&#146;s name to Bank of Commerce
    Mortgage<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>

    in order to enhance our name recognition throughout Northern
    California. The services offered by Bank of Commerce
    Mortgage<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>

    include brokerage mortgages for single and multi-family
    residential new financing, refinancing and equity lines of
    credit which are then sold, servicing included, on the secondary
    market or to correspondent relationships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our principal executive offices are located at 1951 Churn Creek
    Road, Redding, California and the telephone number is
    <FONT style="white-space: nowrap">(530)&#160;722-3939.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2009
    Results and Balance Sheet Composition</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Due to conservative loan underwriting, active servicing of
    problem credits and maintenance of a healthy net interest
    margin, we have remained profitable during the recent economic
    downturn and positioned the company to take advantage of growth
    opportunities in the coming years. During 2009 we recorded net
    income of $6.0&#160;million, and net income to common
    shareholders of $5.1&#160;million, or $0.58 per diluted share,
    after deducting preferred dividend payments made to the Treasury
    and accretion of preferred shares under the TARP Capital
    Purchase Program. This was an increase from $2.2&#160;million of
    net income, or $0.25 per share, reported in 2008. As of
    December&#160;31, 2009, we had total assets of
    $813.4&#160;million, total loans of $601.4&#160;million, an
    allowance for loan and lease losses of $11.2&#160;million, or
    1.86% of total loans, deposits outstanding of
    $640.5&#160;million and shareholders&#146; equity of
    $68.8&#160;million.
</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the past two years, we have restructured our loan
    portfolio, in order to reduce our concentration in commercial
    real estate loans, especially construction and land development
    loans, and maintained our strengths in commercial and financial
    loans. In addition, in April 2009, we entered into a loan sale
    and purchase agreement with a third party whereby we purchased
    an $80.6&#160;million pool of first mortgage loans made to legal
    United States residents who do not have a social security number
    (&#147;ITIN loans&#148;). These were seasoned, performing loans
    carrying an average balance of $86,000 and a yield of 7.44%. As
    of December&#160;31, 2009 and 2008, our loan portfolio consisted
    of the following types of loans:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Loan Type</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Dollar Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total Loans</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Dollar Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total Loans</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(In thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(In thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commercial and financial loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    133,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.13
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    164,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.11
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Real estate&#160;&#151; construction loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,524
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.90
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.97
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Real estate&#160;&#151; commercial (investor)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197,023
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32.76
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    147,868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.03
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Real estate&#160;&#151; commercial (owner occupied)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,001
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.48
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,046
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.28
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Real estate&#160;&#151; ITIN loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.01
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Real estate&#160;&#151; mortgage
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,526
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.41
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,285
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.85
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Real estate&#160;&#151; other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,601
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.58
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,915
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.57
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Installment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,223
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.37
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,213
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.36
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    903
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    601,439
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    527,463
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2009, we increased our emphasis on gathering core
    deposits within our markets through the opening of our
    Buenaventura branch in Redding, the promotion of a new savings
    product and the adoption of an incentive compensation plan for
    our employees for obtaining non-CD deposit accounts. As an
    operating tool to manage the Bank&#146;s net interest income,
    although not customary in the industry, our management
    calculates &#145;core deposits&#146; without regard to any
    certificates of deposit, regardless of point of origination,
    size or maturity. As of December&#160;31, 2009 and 2008 our
    deposits consisted of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Deposit Type</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Dollar Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total Deposits</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Dollar Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total Deposits</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(In thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(In thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Demand&#160;&#151; noninterest bearing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    69,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.84
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    79,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.40
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Demand&#160;&#151; interest bearing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    163,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.58
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143,871
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.91
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Savings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,414
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.21
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.09
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Certificates of Deposit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    341,789
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53.37
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    264,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47.60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    640,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    555,282
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our base of core deposits has been a driver of our net interest
    margin and profitability throughout our recent history. Among
    our deposits, our brokered deposits totaled $86.7&#160;million
    at December&#160;31, 2009. Included in the brokered deposit
    figure is our internet-based deposit gathering program. The
    program has been extremely successful in both the level of
    deposits and pricing. We have subscribed to National CD Rate
    line and Community Bank Funding Company&#146;s electronic
    transaction network (&#147;eTN&#148;) for approximately
    15&#160;months. The deposits gathered under the National CD Rate
    line program are not considered &#147;brokered.&#148; We pay an
    annual subscription fee to post our rates to the company&#146;s
    website. Institutional investors such as credit unions, banks,
    insurance companies, and other financial institutions review our
    rates and contact us directly to confirm our rates and submit
    the proper documentation to establish a time deposit. As of
    December&#160;31, 2009, we had approximately $50.0&#160;million
    in National CD Rate line time deposits; with rates between 50 to
    100&#160;basis points below our local markets. The individual
    time deposits generally range from $99,000 to $250,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The eTN subscription program through Community Bank Funding
    Company (&#147;CBFC&#148;) is somewhat different than National
    CD Rate line program. As with National CD Rate line,
    institutional investors subscribe to CBFC
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    program to view our rates and the posted rates of other banks.
    However, CBFC does not charge a subscription fee to post or view
    the interest rates but instead charges a fee of 6 to
    20&#160;basis points from each investor&#146;s time deposit as
    the cost of doing business. Accordingly, we report these
    deposits as &#147;brokered&#148;. As of December&#160;31, 2009,
    we had approximately $12.0&#160;million in CBFC time deposits;
    with rates between 50 to 100&#160;basis points below our local
    markets. The individual time deposits generally range from
    $99,000 to $250,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our net interest margin increased to 3.94% in 2009 from 3.47% in
    2008, due in part to the reduction of our cost of funds to 1.87%
    resulting from our core deposit strategy, CD programs and the
    favorable re-pricing of certain borrowings.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Business
    Strategy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We continuously search for both organic and external expansion
    opportunities, through internal growth, strategic alliances,
    acquisitions, establishing a new office or the delivery of new
    products and services. Systematically, we will reevaluate the
    short and long-term profitability of all of our lines of
    business, and will not hesitate to reduce or eliminate
    unprofitable locations or lines of business. We remain a viable,
    independent bank committed to enhancing shareholder value. This
    commitment has been fostered by proactive management and
    dedication to our staff, customers, and the markets we serve.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our vision is to embrace changes in the industry and develop
    profitable business strategies that allow us to maintain our
    customer relationships and build new ones. Our competitors are
    no longer just banks; we must compete with a myriad of other
    financial entities that compete for our core business. The
    flexibility provided by our status as a financial holding
    company has become increasingly important. We have developed
    strategic plans that evaluate additional financial services and
    products that can be delivered to our customers efficiently and
    profitably. Producing quality returns is, as always, a top
    priority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our governance structure enables us to manage all major aspects
    of our business effectively through an integrated process that
    includes financial, strategic, risk and leadership planning. Our
    management processes, structures and policies and procedures
    help to ensure compliance with laws and regulations and provide
    clear lines for decision-making and accountability. Results are
    important, but we are equally concerned with how we achieve
    those results. Our core values and commitment to high ethical
    standards is material to sustaining public trust and confidence
    in our Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our primary business strategy is to provide comprehensive
    banking and related services to small and mid-sized businesses,
    <FONT style="white-space: nowrap">not-for-profit</FONT>
    organizations, and professional service providers as well as
    banking services for consumers, primarily business owners and
    their key employees. We emphasize the diversity of our product
    lines and high levels of personal service and, through our
    technology, offer convenient access typically associated with
    larger financial institutions, while maintaining the local
    decision-making authority and market knowledge, typical of a
    local community bank. Management intends to pursue our business
    strategy through the following initiatives:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Utilize the Strength of Our Management
    Team.</I>&#160;&#160;The experience, depth and knowledge of our
    management team represent one of our greatest strengths and
    competitive advantages. Our Senior Leadership Committee
    establishes short and long-term strategies, operating plans and
    performance measures and reviews our performance to plan on a
    monthly basis. Our Credit Round Table Committee recommends
    corporate credit practices and limits, including industry
    concentration limits and approval requirements and exceptions.
    Our Technology Steering Committee establishes technological
    strategies, makes technology investment decisions, and manages
    the implementation process. Our ALCO Round Table Committee
    establishes and monitors liquidity ranges, pricing, maturities,
    investment goals, and interest spread on balance sheet accounts.
    Our SOX 404 Compliance Team has established the master plan for
    full documentation of the Company&#146;s internal controls and
    compliance with Section&#160;404 of the Sarbanes-Oxley Act of
    2002.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Leverage Our Existing Foundation for Additional
    Growth</I>.&#160;&#160;Based on our management&#146;s depth of
    experience and certain infrastructure investments, we believe
    that we will be able to take advantage of certain economies of
    scale typically enjoyed by larger organizations to expand our
    operations both organically and through strategic cost-effective
    avenues. We believe that there will be significant opportunities
    to acquire failing institutions or their assets through loss
    sharing agreements with the FDIC, buy branches from
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    struggling banks in our market areas looking to raise capital,
    and acquire entire franchises for little to no premium. We also
    believe that the investments we have made in our data
    processing, staff and branch network will be able to support a
    much larger asset base. We are committed, however, to control
    any additional growth in a manner designed to minimize risk and
    to maintain strong capital ratios. We believe that the net
    proceeds raised in this offering will assist us in implementing
    our growth strategies by providing the capital necessary to
    support future asset growth, both organically and through
    strategic acquisitions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Maintain Local Decision-Making and
    Accountability.</I>&#160;&#160;We believe we have a competitive
    advantage over larger national and regional financial
    institutions by providing superior customer service with
    experienced, knowledgeable management, localized decision-making
    capabilities and prompt credit decisions. We believe that our
    customers want to deal directly with the people who make the
    ultimate credit decisions and have provided our Bank managers
    and loan officers with the authority commensurate with their
    experience and history which we believe strikes the right
    balance between local decision-making and sound banking practice.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Focus on Asset Quality and Strong
    Underwriting.</I>&#160;&#160;We consider asset quality to be of
    primary importance and have taken measures to ensure that,
    despite the turbulent economy and growth in our loan portfolio,
    we consistently maintain strong asset quality. As part of our
    efforts, we utilize a third party loan review service to
    evaluate our loan portfolio on a quarterly basis and recommend
    action on certain loans if deemed appropriate. As of
    December&#160;31, 2009, we had $13.4&#160;million in
    nonperforming assets, including other real estate owned of
    $2.9&#160;million, which as a percentage of total assets was
    1.65%. We also seek to maintain a prudent allowance for loan
    losses, which at December&#160;31, 2009 was $11.2&#160;million,
    representing 1.86% of our loan portfolio.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Build a Stable Core Deposit Base.</I>&#160;&#160;We will
    continue to grow a stable core deposit base of business and
    retail customers. In the event that our asset growth outpaces
    these local core deposit funding sources, we will continue to
    utilize Federal Home Loan Bank borrowings and raise deposits in
    the national market using deposit intermediaries. We intend to
    continue our practice of developing a full deposit relationship
    with each of our loan customers, their business partners, and
    key employees. We will continue to use &#147;hot spot&#148;
    consumer depositories with state of the art technologies in
    highly convenient locations to enhance our core deposit base.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risk
    Factors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investment in our common stock involves certain risks. You
    should consider carefully the risks described under &#147;RISK
    FACTORS&#148; beginning on page&#160;8 of this prospectus, as
    well as other information included in or incorporated by
    reference into this prospectus, including our consolidated
    financial statements and notes thereto, before making an
    investment decision.
</DIV>
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</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary of the offering contains basic information
    about this offering and our common stock and is not intended to
    be a complete discussion of the offering or the common stock.
    For a more complete understanding of the common stock, please
    refer to the section of this prospectus entitled
    &#147;DESCRIPTION OF CAPITAL STOCK.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Issuer</TD>
    <TD></TD>
    <TD valign="bottom">
    Bank of Commerce Holdings, a California corporation.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common stock we are offering</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock, no par value.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common stock outstanding after this offering</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock. (1)(2)</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Over-allotment option</TD>
    <TD></TD>
    <TD valign="bottom">
    We have granted the underwriters an option to purchase up to an
    additional&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of common stock within 30&#160;days of the date of this
    prospectus in order to cover over-allotments, if any.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to use the net proceeds from this offering to enhance
    our ability to support internal organic growth, to maintain
    prudent and required regulatory capital levels, and for general
    corporate purposes which may include pursuing acquisitions of
    deposits, loans, whole banks or branches through both negotiated
    and FDIC-assisted transactions, and to position us for the
    eventual redemption of our Series&#160;A Preferred Stock issued
    to the Treasury under the TARP Capital Purchase Program.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Market and trading symbol for our common stock</TD>
    <TD></TD>
    <TD valign="bottom">
    Our common stock is listed and traded on the NASDAQ Global
    Market under the symbol &#147;BOCH.&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The number of shares of common stock outstanding immediately
    after the closing of this offering is based on
    8,711,495&#160;shares of common stock outstanding as of
    December&#160;31, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Unless otherwise indicated, the number of shares of common stock
    presented in this prospectus excludes shares issuable pursuant
    to the exercise of the underwriters&#146; over-allotment option,
    282,080&#160;shares of common stock issuable pursuant to
    outstanding options under our stock option plan and
    405,405&#160;shares of common stock issuable pursuant to
    outstanding warrants issued to the Treasury as part of the TARP
    Capital Purchase Program.</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    SELECTED CONSOLIDATED FINANCIAL INFORMATION</FONT></B></A>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth summary historical consolidated
    financial information at or for the years ended
    December&#160;31, 2008, 2007, 2006, and 2005 (which has been
    derived from our audited consolidated financial statements), and
    at or for the year ended December&#160;31, 2009 (which is
    unaudited). The unaudited financial information as of and for
    the year ended December&#160;31, 2009 has been prepared on the
    same basis as our audited financial statements and includes, in
    our opinion, all adjustments necessary to fairly present the
    data for such periods. Historical results are not necessarily
    indicative of future results. You should read the following
    summary selected consolidated financial information in
    conjunction with our consolidated financial statements and
    related notes and &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of Operations&#148;
    included in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008 (the
    &#147;2008&#160;Form 10-K&#148;) and our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended September&#160;30, 2009, and our earnings
    release dated January&#160;29, 2010 which have been filed and
    furnished, respectively, with the SEC and are incorporated in
    this prospectus by reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>At or for the Years Ended December&#160;31,</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom">
    <B>In thousands (except ratios and per share data)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Statements of Income:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Interest Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,690
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41,128
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,610
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Interest Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,994
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,348
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,238
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for Loan Losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,475
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,291
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    226
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Noninterest Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,063
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,623
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,535
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,928
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Noninterest Expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,624
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,392
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,663
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,538
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance Sheets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    813,406
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    774,214
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    618,327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    583,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    511,644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    601,439
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    527,463
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    486,283
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408,989
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    363,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allowance for Loan Losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,207
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,316
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    640,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    555,282
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    473,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    439,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    372,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shareholders&#146; Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,578
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Performance Ratios:(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Return on Average Assets(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.33
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.04
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.34
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Return on Average Shareholders&#146; Equity(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividend Payout
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average Equity to Average Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tier&#160;1 Risk-Based Capital-Bank(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Risk-Based Capital-Bank
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.84
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Interest Margin(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average Earning Assets to Total Average Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Nonperforming Assets to Total Assets(6)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Charge-offs to Average Loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    .00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (.09
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allowance for Loan Losses to Total Loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Nonperforming Loans to Allowance for Loan Losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    239.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Efficiency Ratio(7)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>At or for the Years Ended December&#160;31,</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom">
    <B>In thousands (except ratios and per share data)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Share Data:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average Common Shares&#160;Outstanding&#160;&#151; basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,713
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average Common Shares&#160;Outstanding&#160;&#151; diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,938
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,845
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Book Value Per Common Share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Basic Earnings Per Common Share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diluted Earnings Per Common Share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.71
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Dividends Per Common Share(8)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Regulatory capital ratios and asset quality ratios are end of
    period ratios.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    With the exception of end of period ratios, all ratios are based
    on average daily balances during the indicated period.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Return on average equity is net income divided by average
    shareholders&#146; equity.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Regulatory capital ratios are defined in detail in a table on
    page&#160;13 of our
    <FONT style="white-space: nowrap">2008&#160;Form&#160;10-K.</FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Net interest margin equals net interest income as a percent of
    average interest-earning assets.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Nonperforming assets includes all nonperforming loans
    (nonaccrual loans, loans 90&#160;days past due and still
    accruing interest and restructured loans) and real estate
    acquired by foreclosure.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    The efficiency ratio is calculated by dividing noninterest
    expense by the sum of net interest income and noninterest
    income. The efficiency ratio measures how much we spend in order
    to generate each dollar of net revenue.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Excludes preferred shares under the Treasury&#146;s Capital
    Purchase Program as well as the minority interest in our
    consolidated subsidiary related to Bank of Commerce Mortgage.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>An investment in our common stock involves certain risks. You
    should carefully consider the risks described below, as well as
    the other information included or incorporated by reference in
    this prospectus, before making an investment decision.
    Additional risks and uncertainties not presently known to us or
    that we currently deem immaterial may also impair our business
    operations. If any of these risks actually occurs, our business,
    financial condition or results of operations could be materially
    adversely affected. In that case, the trading price of our
    common stock could decline substantially, and you may lose all
    or part of your investment. Additional risks and uncertainties
    not presently known to us at this time or that we currently deem
    immaterial may also materially and adversely affect our business
    and operations. The risks discussed below include
    forward-looking statements, and our actual results may differ
    substantially from those discussed in these forward-looking
    statements.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business is subject to various economic risks that could
    adversely impact our results of operations and financial
    condition.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There was significant disruption and volatility in the financial
    and capital markets during 2008 and 2009. The financial markets
    and the financial services industry in particular suffered
    unprecedented disruption, causing a number of institutions to
    fail or require government intervention to avoid failure. These
    conditions were largely the result of the erosion of the United
    States and international credit markets, including a significant
    and rapid deterioration in the mortgage lending and related real
    estate markets and valuation levels. Unemployment nationwide and
    in California has increased significantly through this economic
    downturn and is anticipated to increase or remain elevated for
    the foreseeable future. Continued declines in real estate
    values, high unemployment and financial stress on borrowers as a
    result of the uncertain economic environment could have an
    adverse effect on our borrowers or their customers, which could
    adversely affect our financial condition and results of
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conduct banking operations principally in Northern
    California. As a result, our business results are dependent in
    large part upon the business activity, population, income
    levels, deposits and real estate activity in Northern
    California. There can be no assurance that the economic
    conditions that have adversely affected the financial services
    industry, and the capital, credit and real estate markets
    generally, will improve in the near term, in which case we could
    continue to experience losses and write-downs of assets, and
    could face capital and liquidity constraints or other business
    challenges. In addition, the State of California is currently
    experiencing significant budgetary and fiscal difficulties,
    which include terminating and furloughing state employees. The
    businesses operating in California and Sacramento in particular
    depend on these state employees for business, and reduced
    spending activity by these state employees could have a material
    impact on the success or failure of these businesses, some of
    which are current or potential future customers of the Bank. A
    further deterioration in economic conditions, particularly
    within our geographic region, could result in the following
    consequences, any of which could have a material adverse effect
    on our business, prospects, financial condition and results of
    operations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Loan delinquencies may further increase causing additional
    increases in our provision and allowance for loan losses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Financial sector regulators may adopt more restrictive practices
    or interpretations of existing regulations, or adopt new
    regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Collateral for loans made by the Bank, especially real estate
    related, may continue to decline in value, which in turn could
    reduce a client&#146;s borrowing power, and reduce the value of
    assets and collateral associated with our loans held for
    investment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Consumer confidence levels may decline and cause adverse changes
    in payment patterns, resulting in increased delinquencies and
    default rates on loans and other credit facilities and decreased
    demand for our products and services;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Performance of the underlying loans in the private label
    mortgage backed securities we hold may continue to deteriorate
    as the recession continues, potentially causing
    <FONT style="white-space: nowrap">other-than-temporary</FONT>
    impairment markdowns to our investment portfolio.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Nonperforming
    assets take significant time to resolve and adversely affect our
    results of operations and financial condition.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, our total nonperforming assets
    amounted to $13.4&#160;million, including $2.9&#160;million in
    other real estate owned, or 1.65% of our total assets, down from
    $23.1&#160;million, or 2.98% of total assets a year earlier. We
    experienced $6.7&#160;million in net charge-offs in 2009
    compared to $6.3&#160;million in 2008. Our provision for loan
    and lease losses was $9.5&#160;million for the twelve months
    ended December&#160;31, 2009 compared to $6.5&#160;million for
    the twelve months ended December&#160;31, 2008. Nonperforming
    assets adversely affect our net income in various ways. Until
    economic and market conditions improve, we may expect to
    continue to incur losses relating to an increase in
    nonperforming assets. We generally do not record interest income
    on nonperforming loans or other real estate owned, thereby
    adversely affecting our income, and increasing our loan
    administration costs. When we take collateral in foreclosures
    and similar proceedings, we are required to mark the related
    asset to the then fair market value of the collateral, which may
    ultimately result in a loss. An increase in the level of
    nonperforming assets increases our risk profile and may impact
    the capital levels our regulators believe are appropriate in
    light of the ensuing risk profile. While we reduce problem
    assets through loan sales, workouts, restructurings and
    otherwise, decreases in the value of the underlying collateral,
    or in these borrowers&#146; performance or financial condition,
    whether or not due to economic and market conditions beyond our
    control, could adversely affect our business, results of
    operations and financial condition. In addition, the resolution
    of nonperforming assets requires significant commitments of time
    from management and our directors, which can be detrimental to
    the performance of their other responsibilities. There can be no
    assurance that we will not experience future increases in
    nonperforming assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    have a concentration risk in real estate related
    loans.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, approximately 77.13% of our loan
    portfolio was secured by real estate, the majority of which is
    commercial real estate. Of that amount, 9.90% of our total loan
    portfolio consisted of construction loans, 43.23% related to
    commercial real estate, 16.42% related to residential mortgage
    loans (including our ITIN loans) and 7.58% involved real estate
    related loans not classified in the preceding definitions. As a
    result of increased levels of commercial and consumer
    delinquencies and declining real estate values, we have
    experienced increasing levels of net charge-offs. A large
    percentage of our loan portfolio is secured by commercial real
    estate loans which generally carry larger loan balances and
    historically have involved a greater degree of financial and
    credit risks than residential first mortgage loans. These loans
    are primarily made based on the cash flow of the borrower and
    secondarily on the underlying collateral provided by the
    borrower, and therefore repayment of these loans is often
    dependent on the cash flow of the borrower which may be
    unpredictable. Continued increases in commercial and consumer
    delinquency levels or continued declines in real estate market
    values would require increased net charge-offs and increases in
    the allowance for loan and lease losses, which could have a
    material adverse effect on our business, financial condition,
    results of operations and prospects.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Monitoring
    and servicing our Individual Tax Identification Number
    (&#147;ITIN&#148;) residential mortgage loans could prove more
    costly and time consuming than previously modeled.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In April 2009, we completed a loan &#147;swap&#148; transaction,
    whereby we exchanged, without recourse, $14.0&#160;million in
    certain nonperforming assets measured at fair value and cash of
    approximately $67.0&#160;million for a pool of performing ITIN
    loans with an estimated fair value of $80.7&#160;million. These
    loans are residential mortgage loans made to legal United States
    residents without a social security number and are
    geographically dispersed throughout the United States. This is
    our first ITIN loan transaction, and as such, is serviced
    through a third party. Worsening economic conditions in the
    United States may cause us to suffer higher default rates on our
    ITIN loans and reduce the value of the assets that we hold as
    collateral. In addition, if we are forced to foreclose and
    service these ITIN properties ourselves, we may realize
    additional monitoring, servicing and appraisal costs due to the
    geographic dispersement of the portfolio which would adversely
    affect our noninterest expense.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Future
    loan losses may exceed the allowance for loan
    losses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have established a reserve for possible losses expected in
    connection with loans in the credit portfolio. This allowance
    reflects estimates of the collectability of certain identified
    loans, as well as an overall risk assessment of
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    total loans outstanding. The determination of the amount of loan
    loss allowance is subjective; although the method for
    determining the amount of the allowance uses criteria such as
    risk ratings and historical loss rates, these factors may not be
    adequate predictors of future loan performance, particularly in
    the current economic climate. Accordingly, we cannot offer
    assurances that these estimates ultimately will prove correct or
    that the loan loss allowance will be sufficient to protect
    against losses that ultimately may occur. If the loan loss
    allowance proves to be inadequate, we will need to make
    additional provisions to the allowance, which is accounted for
    as charges to income, which would adversely impact results of
    operations and financial condition. Moreover, bank regulators
    frequently monitor banks&#146; loan loss allowances, and if
    regulators were to determine that the allowance was inadequate,
    they may require us to increase the allowance, which also would
    adversely impact results of operations and financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Defaults
    may negatively impact us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A source of risk arises from the possibility that losses will be
    sustained if a significant number of borrowers, guarantors and
    related parties fail to perform in accordance with the terms of
    their loans. We have adopted underwriting and credit monitoring
    procedures and credit policies, including the establishment and
    review of the allowance for loan losses, which management
    believes are appropriate to minimize risk by assessing the
    likelihood of nonperformance, tracking loan performance and
    diversifying the loan portfolio. These policies and procedures,
    however, may not prevent unexpected losses that could materially
    affect our results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interest
    rate fluctuations, which are out of our control, could harm
    profitability.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our income is highly dependent on &#147;interest rate
    differentials&#148; and the resulting net interest margins
    (i.e., the difference between the interest rates earned on the
    Bank&#146;s interest-earning assets such as loans and
    securities, and the interest rates paid on the Bank&#146;s
    interest-bearing liabilities such as deposits and borrowings).
    These rates are highly sensitive to many factors, which are
    beyond our control, including general economic conditions,
    inflation, recession and the policies of various governmental
    and regulatory agencies, in particular, the Federal Reserve
    Board. Because of our preference for using variable rate pricing
    on the majority of our loan portfolio and non-interest bearing
    demand deposit accounts we are asset sensitive. As a result, we
    are generally adversely affected by declining interest rates. In
    addition, changes in monetary policy, including changes in
    interest rates, influence the origination of loans, the purchase
    of investments and the generation of deposits. These changes
    also affect the rates received on loans and securities and paid
    on deposits, which could have a material adverse effect on our
    business, financial condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in the fair value of our securities may reduce our
    shareholders&#146; equity and net income.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, $80.1&#160;million of our securities
    were classified as
    <FONT style="white-space: nowrap">available-for-sale.</FONT>
    At such date, the aggregate unrealized gain on our
    <FONT style="white-space: nowrap">available-for-sale</FONT>
    securities, net of tax, was $658,000. We increase or decrease
    shareholders&#146; equity by the amount of change from the
    unrealized gain or loss (the difference between the estimated
    fair value and the amortized cost) of our
    <FONT style="white-space: nowrap">available-for-sale</FONT>
    securities portfolio, net of the related tax, under the category
    of accumulated other comprehensive income/loss. Therefore, a
    decline in the estimated fair value of this portfolio will
    result in a decline in reported shareholders&#146; equity, as
    well as book value per common share and tangible book value per
    common share. This decrease will occur even though the
    securities are not sold. In the case of debt securities, if
    these securities are never sold and there are no credit
    impairments, the decrease will be recovered over the life of the
    securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our available for sale equity holdings consist of shares of the
    Federal Home Loan Bank of San&#160;Francisco (&#147;FHLB&#148;).
    As of December&#160;31, 2009, we held stock in the FHLB totaling
    $6.1&#160;million. The stock is carried at cost and is subject
    to recoverability testing under applicable accounting standards.
    As of December&#160;31, 2009, we did not recognize an impairment
    charge related to our FHLB stock holdings; however, future
    negative changes to the financial condition of the FHLB may
    require us to recognize an impairment charge with respect to
    such stock holdings.
</DIV>
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    10
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conditions
    in the financial markets may limit our access to additional
    funding to meet our liquidity needs.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Liquidity is essential to our business, as we must maintain
    sufficient funds to respond to the needs of depositors and
    borrowers. An inability to raise funds through deposits,
    repurchase agreements, federal funds purchased, FHLB advances,
    the sale or pledging as collateral of loans and other assets
    could have a substantial negative effect on our liquidity. Our
    access to funding sources in amounts adequate to finance our
    activities could be impaired by factors that affect us
    specifically or the financial services industry in general.
    Factors that could negatively affect our access to liquidity
    sources include negative operating results, a decrease in the
    level of our business activity due to a market downturn or
    negative regulatory action against us. Our ability to borrow
    could also be impaired by factors that are not specific to us,
    such as severe disruption of the financial markets or negative
    news and expectations about the prospects for the financial
    services industry as a whole, as evidenced by turmoil in the
    domestic and worldwide credit markets in recent years.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    condition of other financial institutions could negatively
    affect us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Financial services institutions are interrelated as a result of
    trading, clearing, counterparty, public perceptions and other
    relationships. We have exposure to many different industries and
    counterparties, and we routinely execute transactions with
    counterparties in the financial services industry, including
    commercial banks, brokers and dealers, investment banks and
    other institutional clients. Many of these transactions expose
    us to credit risk in the event of a default by a counterparty or
    client. In addition, our credit risk may be exacerbated when the
    collateral held by us cannot be realized upon or is liquidated
    at prices not sufficient to recover the full amount of the
    credit or derivative exposure due to us. Any such losses could
    have a material adverse effect on our financial condition and
    results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in laws, government regulation and monetary policy may have a
    material effect on our results of operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Financial institutions have been the subject of substantial
    legislative and regulatory changes and may be the subject of
    further legislation or regulation in the future, none of which
    is within our control. Significant new laws or regulations or
    changes in, or repeals of, existing laws or regulations may
    cause our results of operations to differ materially. In
    addition, the cost and burden of compliance with applicable laws
    and regulations have significantly increased and could adversely
    affect our ability to operate profitably. Further, federal
    monetary policy significantly affects credit conditions for us,
    as well as for our borrowers, particularly as implemented by the
    Federal Reserve Board, primarily through open market operations
    in United States government securities, the discount rate for
    bank borrowings and reserve requirements. A material change in
    any of these conditions could have a material impact on us or
    our borrowers, and therefore on our results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;3, 2008, the Emergency Economic Stabilization
    Act of 2008 (&#147;EESA&#148;) was signed into law. Pursuant to
    the EESA, the Treasury was granted the authority to take a range
    of actions for the purpose of stabilizing and providing
    liquidity to the United States financial markets and has
    proposed several programs, including the purchase by the
    Treasury of certain troubled assets from financial institutions
    and the direct purchase by the Treasury of equity of financial
    institutions. There can be no assurance, however, as to the
    actual impact that the foregoing or any other governmental
    program will have on the financial markets. The failure of the
    financial markets to stabilize and a continuation or worsening
    of current financial market conditions could materially and
    adversely affect our business, financial condition, results of
    operations, access to credit or the trading price of our common
    stock. In addition, current initiatives of President
    Obama&#146;s Administration and the possible enactment of
    recently proposed bankruptcy legislation may adversely affect
    our financial condition and results of operations. There can be
    no assurance, however, as to the actual impact that the
    foregoing or any other governmental program will have on the
    financial markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The failure of the financial markets to stabilize and a
    continuation or worsening of current financial market conditions
    could materially and adversely affect our business, financial
    condition, results of operations, access to credit and the
    trading price of our common stock.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to face increased regulation and supervision of our
    industry as a result of the existing financial crisis, and there
    will be additional requirements and conditions imposed on us to
    the extent that we participate in any of the programs
    established or to be established by the Treasury or by the
    federal bank regulatory agencies. Such additional regulation and
    supervision may increase our costs and limit our ability to
    pursue business opportunities. The effects of such recently
    enacted, and proposed, legislation and regulatory programs on us
    cannot reliably be determined at this time.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    of our participation in the Troubled Asset Relief Program we are
    subject to several restrictions including, without limitation,
    restrictions on our ability to declare or pay dividends and
    repurchase our shares as well as restrictions on compensation
    paid to our executives.</FONT></I></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;14, 2008, in exchange for an aggregate purchase
    price of $17.0&#160;million, we issued and sold to the Treasury
    pursuant to the Trouble Asset Relief Program (&#147;TARP&#148;)
    Capital Purchase Program the following:
    (i)&#160;17,000&#160;shares of our newly designated Fixed Rate
    Cumulative Perpetual Preferred Stock, Series&#160;A, no par
    value per share and liquidation preference $1,000 per share (the
    &#147;Series&#160;A Preferred Stock&#148;) and (ii)&#160;a
    warrant to purchase up to 405,405&#160;shares of our common
    stock, no par value per share, at an exercise price of $6.29 per
    share, subject to certain anti-dilution and other adjustments.
    The warrant may be exercised for up to ten years after issuance.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the issuance and sale of our securities, we
    entered into a Letter Agreement including the Securities
    Purchase Agreement&#160;&#151; Standard Terms, dated
    November&#160;14, 2008, with the Treasury (the
    &#147;Agreement&#148;). The Agreement contains limitations on
    the payment of quarterly cash dividends on our common stock in
    excess of $0.08 per share, and on our ability to repurchase our
    common stock.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    Series&#160;A Preferred Stock diminishes the net income
    available to our common shareholders and earnings per common
    share.</FONT></I></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dividends accrued on the Series&#160;A Preferred Stock
    reduce the net income available to common shareholders and our
    earnings per common share. In 2009 our net income of
    $6.0&#160;million was reduced to $5.1&#160;million after
    deducting $942,000 in dividends to the Treasury plus accretion
    on the Series&#160;A Preferred Stock. The Series&#160;A
    Preferred Stock is cumulative, which means that any dividends
    not declared or paid will accumulate and will be payable when
    the payment of dividends is resumed. The dividend rate on the
    Series&#160;A Preferred Stock will increase from 5% to 9% per
    annum five years after its original issuance if not earlier
    redeemed. If we are unable to redeem the Preferred Stock prior
    to the date of this increase, the cost of capital to us will
    increase substantially. Depending on our financial condition at
    the time, this increase in the Series&#160;A Preferred Stock
    annual dividend rate could have a material adverse effect on our
    earnings and could also adversely affect our ability to pay
    dividends on our common shares. Shares of Series&#160;A
    Preferred Stock will also receive preferential treatment in the
    event of the liquidation, dissolution or winding up of the
    Company.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Finally, the terms of the Series&#160;A Preferred Stock allow
    the Treasury to impose additional restrictions, including those
    on dividends and unilateral amendments required to comply with
    changes in applicable federal law.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    holders of the Series&#160;A Preferred Stock have certain voting
    rights that may adversely affect our common shareholders, and
    the holders of the Series&#160;A Preferred Stock may have
    interests different from our common shareholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that we fail to pay dividends on the Series&#160;A
    Preferred Stock for a total of at least six quarterly dividend
    periods (whether or not consecutive), the Treasury will have the
    right to appoint two directors to our board of directors until
    all accrued but unpaid dividends have been paid. Otherwise,
    except as required by law, holders of the Series&#160;A
    Preferred Stock have limited voting rights. So long as shares of
    Series&#160;A Preferred Stock are outstanding, in addition to
    any other vote or consent of shareholders required by law or our
    Articles of Incorporation, the vote or consent of holders of at
    least
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the shares of Series&#160;A Preferred Stock outstanding is
    required for:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any authorization or issuance of shares ranking senior to the
    Series&#160;A Preferred Stock;
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Any amendments to the rights of the Series&#160;A Preferred
    Stock so as to adversely affect the rights, preferences,
    privileges or voting power of the Series&#160;A Preferred
    Stock;&#160;or
</TD>
</TR>

</TABLE>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Consummation of any merger, share exchange or similar
    transaction unless the shares of Series&#160;A Preferred Stock
    remain outstanding, or if we are not the surviving entity in
    such transaction, are converted into or exchanged for preference
    securities of the surviving entity and the shares of
    Series&#160;A Preferred Stock remaining outstanding or such
    preference securities have the rights, preferences, privileges
    and voting power of the Series&#160;A Preferred Stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of our Series&#160;A Preferred Stock, including the
    Treasury, may have different interests from the holders of our
    common stock, and could vote to block the foregoing
    transactions, even when considered desirable by, or in the best
    interests of, the holders of our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    rely heavily on our management team and the loss of key officers
    may adversely affect operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our success has been and will continue to be greatly influenced
    by the ability to retain existing senior management and, with
    expansion, to attract and retain qualified additional senior and
    middle management. We recently had a number of changes in our
    senior management team, including the promotions of our new
    Chief Financial Officer and Chief Operating Officer and the
    appointment of a new Chief Risk Officer. The departure of any of
    our senior management could have an adverse effect on us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our participation in the TARP Capital Purchase Program could
    also have an adverse effect on our ability to attract and retain
    qualified executive officers. Legislation and rules applicable
    to the TARP Capital Purchase Program participants include
    extensive new restrictions on our ability to pay retention
    awards, bonuses and other incentive compensation to our Chief
    Executive Officer during the period in which the Series&#160;A
    Preferred Stock is outstanding. Other restrictions are not
    limited to our Chief Executive Officer and cover other employees
    whose contributions to revenue and performance can be
    significant. The limitations may adversely affect our ability to
    recruit and retain these key employees in addition to our senior
    executive officers, especially if we are competing for talent
    against institutions that are not subject to the same
    restrictions. The Federal Reserve, and perhaps the FDIC, are
    contemplating proposed rules governing the compensation
    practices of financial institutions and these rules, if adopted,
    may adversely affect our management retention and limit our
    ability to promote our objectives through our compensation and
    incentive programs and, as a result, adversely affect our
    results of operations and financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The full scope and impact of these limitations is uncertain and
    difficult to predict. The Secretary of the Treasury has adopted
    standards that implement certain compensation limitations, but
    these standards have not yet been broadly interpreted and
    remain, in many respects, ambiguous. The new and potential
    future legal requirements and implementing standards under the
    Capital Purchase Program may have unforeseen or unintended
    adverse effects on the financial services industry as a whole,
    and particularly on Capital Purchase Program participants,
    including us. It will likely require significant time, effort
    and resources on our part to interpret and apply them. If any of
    our regulators believe that we are not in compliance with new
    and future legal requirements and implementing standards, it
    could subject us to regulatory actions or otherwise adversely
    affect our management retention and, as a result, our results of
    operations and financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Even if we redeem our Series&#160;A Preferred Stock and
    repurchase the warrant issued to the Treasury, we will continue
    to be subject to evolving legal and regulatory requirements that
    may, among other things, require increasing amounts of our time,
    effort and resources to ensure compliance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Internal
    control systems could fail to detect certain
    events.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to many operating risks, including, without
    limitation, data processing system failures and errors, and
    customer or employee fraud. There can be no assurance that such
    an event will not occur, and if such an event is not prevented
    or detected by our other internal controls and does occur, and
    it is uninsured or is in excess of applicable insurance limits,
    it could have a significant adverse impact on our reputation in
    the business community and our business, financial condition and
    results of operations.
</DIV>
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    <BR>
    13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    operations could be interrupted if third party service providers
    experience difficulty, terminate their services or fail to
    comply with banking regulations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We depend, and will continue to depend to a significant extent,
    on a number of relationships with third-party service providers.
    Specifically, we utilize software and hardware systems for
    processing, essential web hosting, debit and credit card
    processing, merchant processing, Internet banking systems and
    other processing services from third-party service providers. If
    these third-party service providers experience difficulties or
    terminate their services, and we are unable to replace them with
    other qualified service providers, our operations could be
    interrupted. If an interruption were to continue for a
    significant period of time, our business, financial condition
    and results of operations could be materially adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Confidential
    customer information transmitted through the Bank&#146;s online
    banking service is vulnerable to security breaches and computer
    viruses, which could expose the Bank to litigation and adversely
    affect its reputation and ability to generate
    deposits.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank provides its customers the ability to bank online. The
    secure transmission of confidential information over the
    Internet is a critical element of online banking. The
    Bank&#146;s network could be vulnerable to unauthorized access,
    computer viruses, phishing schemes and other security problems.
    The Bank may be required to spend significant capital and other
    resources to protect against the threat of security breaches and
    computer viruses, or to alleviate problems caused by security
    breaches or viruses. To the extent that the Bank&#146;s
    activities or the activities of its customers involve the
    storage and transmission of confidential information, security
    breaches and viruses could expose us and the Bank to claims,
    litigation and other possible liabilities. Any inability to
    prevent security breaches or computer viruses could also cause
    existing customers to lose confidence in the Bank&#146;s systems
    and could adversely affect its reputation and our ability to
    generate deposits.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Potential
    acquisitions may disrupt our business and dilute shareholder
    value.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We continuously consider merger and acquisition opportunities
    and conduct due diligence activities related to possible
    transactions with other financial institutions. As a result,
    merger or acquisition discussions and, in some cases,
    negotiations may take place and future mergers or acquisitions
    involving cash, debt or equity securities may occur at any time.
    Acquisitions typically involve the payment of a premium over
    book and market values, and, therefore, some dilution of our
    stock&#146;s tangible book value and net income per common share
    may occur in connection with any future transaction. In
    addition, while loss sharing arrangements currently associated
    with FDIC-assisted transactions provide some level of risk
    reduction; these arrangements do not completely eliminate risk.
    To the extent we would participate in an FDIC-assisted
    transaction there can be no assurances that any positive
    expected results of such a transaction would fully materialize.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Furthermore, failure to realize the expected revenue increases,
    cost savings, increases in geographic or product presence,
    <FONT style="white-space: nowrap">and/or</FONT> other
    projected benefits from an acquisition could have a material
    adverse effect on our financial condition and results of
    operations. We may seek merger or acquisition partners that are
    culturally similar, have experienced management and possess
    either significant market presence or have potential for
    improved profitability through financial management, economies
    of scale or expanded services. We do not currently have any
    specific plans, arrangements or understandings regarding such
    expansion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot say with certainty that we will be able to consummate,
    or if consummated, successfully integrate future acquisitions or
    that we will not incur disruptions or unexpected expenses in
    integrating such acquisitions. In attempting to make such
    acquisitions, we anticipate competing with other financial
    institutions, many of which have greater financial and
    operational resources than us. Acquiring other banks,
    businesses, or branches involves various risks commonly
    associated with acquisitions, including, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Potential exposure to unknown or contingent liabilities of the
    target company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Exposure to potential asset quality issues of the target company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Difficulty and expense of integrating the operations and
    personnel of the target company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Potential disruption to our business;
</TD>
</TR>

</TABLE>
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    <BR>
    14
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Potential diversion of management&#146;s time and attention;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The possible loss of key employees and customers of the target
    company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Difficulty in estimating the value of the target
    company;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Potential changes in banking or tax laws or regulations that may
    affect the target company.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    subject to extensive regulation which could adversely affect our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations are subject to extensive regulation by federal,
    state and local governmental authorities and are subject to
    various laws and judicial and administrative decisions imposing
    requirements and restrictions on part or all of our operations.
    Given the current disruption in the financial markets and
    potential new regulatory initiatives, including the Obama
    Administration&#146;s recent financial regulatory reform
    proposal, new regulations and laws that may affect us are
    increasingly likely. Because our business is highly regulated,
    the laws, rules and regulations applicable to us are subject to
    modification and change. There are currently proposed laws,
    rules and regulations that, if adopted, would impact our
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These proposed laws, rules and regulations, or any other laws,
    rules or regulations, may be adopted in the future, which could
    (i)&#160;make compliance much more difficult or expensive,
    (ii)&#160;restrict our ability to originate, broker or sell
    loans or accept certain deposits, (iii)&#160;further limit or
    restrict the amount of commissions, interest or other charges
    earned on loans originated or sold by us, or (iv)&#160;otherwise
    adversely affect our business or prospects for business.
    Moreover, banking regulators have significant discretion and
    authority to address what regulators perceive to be unsafe or
    unsound practices or violations of laws or regulations by
    financial institutions and holding companies in the performance
    of their supervisory and enforcement duties. The exercise of
    regulatory authority by banking regulators over us may have a
    negative impact on our financial condition and results of
    operations. Additionally, in order to conduct certain
    activities, including acquisitions, we are required to obtain
    regulatory approval. There can be no assurance that any required
    approvals can be obtained, or obtained without conditions or on
    a timeframe acceptable to us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Higher
    FDIC deposit insurance premiums and assessments could adversely
    affect our financial condition.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FDIC insurance premiums increased substantially in 2009, and we
    expect to pay significantly higher FDIC premiums in the future.
    As the large number of recent bank failures continues to deplete
    the Deposit Insurance Fund, the FDIC adopted a revised
    risk-based deposit insurance assessment schedule in February
    2009, which raised deposit insurance premiums. The FDIC also
    implemented a five basis point special assessment of each
    insured depository institution&#146;s assets minus Tier&#160;1
    capital as of June&#160;30, 2009, which special assessment
    amount was capped at 10&#160;basis points times the
    institution&#146;s assessment base for the second quarter of
    2009. In addition, the FDIC recently approved a rule requiring
    financial institutions to prepay their estimated quarterly
    risk-based assessments for the fourth quarter of 2009 and for
    all of 2010 through and including 2012 in order to re-capitalize
    the Deposit Insurance Fund. Accordingly, the Bank prepaid
    deposit insurance premiums in the amount of $3.3&#160;million on
    December&#160;31, 2009. The rule also provides for increasing
    the FDIC assessment rates by three basis points effective
    January&#160;1, 2011. There can be no assurance that the FDIC
    will not increase premiums further or levy additional special
    assessments, either of which could have a material adverse
    effect on our results of operations and financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Shares
    eligible for future sale could have a dilutive
    effect.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares of our common stock eligible for future sale, including
    those that may be issued in connection with our various stock
    option and equity compensation plans, in possible acquisitions,
    and any other offering of our common stock for cash, and the
    issuance of 405,405&#160;shares underlying the warrant issued to
    the Treasury pursuant to the TARP Capital Purchase Program,
    could have a dilutive effect on the market for our common stock
    and could adversely affect its market price. Our Articles of
    Incorporation authorize 50<B>,</B>000,000&#160;shares of which
    8,711,495&#160;shares were outstanding as of December&#160;31,
    2009. In addition there are 282,080&#160;shares subject to
    common stock options outstanding with a weighted average
    exercise price of $5.00 per share.
</DIV>
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    <BR>
    15
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in accounting standards may impact how we report our financial
    condition and results of operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our accounting policies and methods are fundamental to how we
    record and report our financial condition and results of
    operations. From time to time, the Financial Accounting
    Standards Board changes the financial accounting and reporting
    standards that govern the preparation of our financial
    statements. These changes can be difficult to predict and can
    materially impact how we record and report our financial
    condition and results of operations. In some cases, we could be
    required to apply a new or revised standard retroactively,
    resulting in a restatement of prior period financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">A
    natural disaster or recurring energy shortage, especially in
    California, could harm our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, California has been vulnerable to natural
    disasters. Therefore, we are susceptible to the risks of natural
    disasters, such as earthquakes, wildfires, floods and mudslides.
    Natural disasters could harm our operations directly through
    interference with communications, including the interruption or
    loss of our websites, which would prevent us from gathering
    deposits, originating loans and processing and controlling our
    flow of business, as well as through the destruction of
    facilities and our operational, financial and management
    information systems. California has also experienced energy
    shortages, which, if they recur, could impair the value of the
    real estate in those areas affected. Although we have
    implemented several
    <FONT style="white-space: nowrap">back-up</FONT>
    systems and protections and maintain business interruption
    insurance, these measures may not protect us fully from the
    effects of a natural disaster. The occurrence of natural
    disasters or energy shortages in California could have a
    material adverse effect on our business, prospects, financial
    condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to this Offering and Ownership of Our Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    market price of our common stock may decline after the
    offering.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The price per share at which we sell the common stock in this
    offering may be more or less than the market price of our common
    stock on the date the offering is consummated. If the purchase
    price is greater than the market price at the time of sale,
    purchasers will experience an immediate decline in the market
    value of the common stock purchased in this offering. If the
    actual purchase price is less than the market price for the
    shares of common stock, some purchasers in the offering may be
    inclined to immediately sell shares of common stock to attempt
    to realize a profit. Any such sales, depending on the volume and
    timing, could cause the price of our common stock to decline.
    Additionally, because stock prices generally fluctuate over
    time, there is no assurance that purchasers of our common stock
    in the offering will be able to sell shares after the offering
    at a price that is equal to or greater than the actual purchase
    price. Purchasers should consider these possibilities in
    determining whether to purchase shares in the offering and the
    timing of any sales of shares of common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    price of our common stock may fluctuate significantly, and this
    may make it difficult for you to resell shares of common stock
    owned by you at times or at prices you find
    attractive.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stock price volatility may make it difficult for you to resell
    your common stock when you want and at prices you find
    attractive. Our stock price can fluctuate significantly in
    response to a variety of factors including, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Actual or anticipated variations in quarterly results of
    operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Recommendations by securities analysts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Operating and stock price performance of other companies that
    investors deem comparable to us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    News reports relating to trends, concerns and other issues in
    the financial services industry, including the failures of other
    financial institutions in the current economic downturn;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Perceptions in the marketplace regarding us
    <FONT style="white-space: nowrap">and/or</FONT> our
    competitors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Public sentiments toward the financial services and banking
    industry generally;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    New technology used, or services offered, by competitors;
</TD>
</TR>

</TABLE>
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    <BR>
    16
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Significant acquisitions or business combinations, strategic
    partnerships, joint ventures or capital commitments by or
    involving us or our competitors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Failure to integrate acquisitions or realize anticipated
    benefits from acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Changes in government regulations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Geopolitical conditions such as acts or threats of terrorism or
    military conflicts.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    General market fluctuations, industry factors and general
    economic and political conditions and events, such as economic
    slowdowns or recessions, interest rate changes or credit loss
    trends, could also cause our stock price to decrease regardless
    of operating results as evidenced by the current volatility and
    disruption of capital and credit markets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    profitability measures could be adversely affected if we are
    unable to effectively deploy the capital raised in this
    offering.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to use the net proceeds of this offering as described
    below in &#147;USE OF PROCEEDS,&#148; including but not limited
    to possible opportunistic acquisitions, including FDIC-assisted
    transactions. Although we are periodically engaged in
    discussions with potential acquisition candidates, we are not
    currently party to any purchase or merger agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no assurance that we will be able to negotiate
    future acquisitions on terms acceptable to us. Investing the
    proceeds of this offering in investment grade securities until
    we are able to deploy the proceeds would provide lower margins
    than we generally earn on loans, potentially adversely impacting
    shareholder returns, including earnings per share, net interest
    margin, return on assets and return on equity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Only a
    limited trading market exists for our common stock, which could
    lead to significant price volatility.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock is traded on the NASDAQ Global Market under the
    trading symbol &#147;BOCH,&#148; but there have historically
    been low trading volumes in our common stock. The limited
    trading market for our common stock may cause fluctuations in
    the market value of our common stock to be exaggerated, leading
    to price volatility in excess of that which would occur in a
    more active trading market of our common stock. Future sales of
    substantial amounts of common stock in the public market, or the
    perception that such sales may occur, could adversely affect the
    prevailing market price of the common stock. In addition, even
    if a more active market in our common stock develops, we cannot
    assure you that such a market will continue or that shareholders
    will be able to sell their shares at or above the price offered
    by this prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Anti-takeover
    provisions in our articles of incorporation could make a third
    party acquisition of us difficult.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to approve a merger or similar business combination
    with the owner of 20% or more of our common stock (an
    &#147;Interested Shareholder&#148;), our Articles of
    Incorporation contain provisions that would require a
    supermajority vote of
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the outstanding shares of the common stock (excluding the
    shares held by the Interested Shareholder or its affiliates).
    These provisions further require that the per share
    consideration to be paid in such a transaction would have to
    equal or exceed the greater of (a)&#160;the highest per share
    price paid by the Interested Shareholder (i)&#160;within two
    years of the transaction proposal announcement date, or
    (ii)&#160;the date the Interested Shareholder acquired a 20%
    -plus ownership interest (if the acquisition occurred less than
    two years before the transaction announcement) and (b)&#160;the
    fair market value of the Common Stock on (i)&#160;the
    transaction proposal announcement date, or (ii)&#160;the date
    the Interested Shareholder acquired a 20% -plus ownership
    interest (if the acquisition occurred less than two years before
    the transaction announcement).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The operation of these provisions could result in the Company
    becoming a less attractive target for a would-be acquirer. As a
    consequence, it is possible that shareholder would lose an
    opportunity to be paid a premium for their shares in an
    acquisition transaction.
</DIV>
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    <BR>
    17
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    may be future sales or other dilutions of our equity which may
    adversely affect the market price of our common
    stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as described under &#147;UNDERWRITING,&#148; we are not
    restricted from issuing additional shares of common stock,
    including securities that are convertible into or exchangeable
    for, or that represent the right to receive our common stock. In
    addition, we are not prohibited from issuing additional
    securities which are senior to our common stock. Because our
    decision to issue securities in any future offering will depend
    in part on market conditions and other factors beyond our
    control, we cannot predict or estimate the amount, timing or
    nature of any future offerings. Thus, our shareholders bear the
    risk of any future stock issuances reducing the market price of
    our common stock and diluting their stock holdings in us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exercise of the underwriters&#146; over-allotment option,
    the exercise of any options granted to our directors and
    employees, the exercise of the outstanding warrants for our
    common stock as referenced above, the issuance of shares of
    common stock in acquisitions and other issuances of our common
    stock could have an adverse effect on the market price of the
    shares of our common stock. In addition, the existence of
    options and warrants to acquire shares of our common stock may
    materially adversely affect the terms upon which we may be able
    to obtain additional capital in the future through the sale of
    equity securities. Any future issuances of shares of our common
    stock will be dilutive to existing shareholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    holders of our preferred stock and trust preferred securities
    have rights that are senior to those of our holders of common
    stock and that may impact our ability to pay dividends on our
    common stock to our common shareholders and reduce net income
    available to our common shareholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, our subsidiary trusts had outstanding
    $15.0&#160;million of trust preferred securities. These
    securities are effectively senior to shares of common stock due
    to the priority of the underlying junior subordinated debt. As a
    result, we must make payments on our trust preferred securities
    before any dividends can be paid on our common stock; moreover,
    in the event of our bankruptcy, dissolution, or liquidation, the
    obligations outstanding with respect to our trust preferred
    securities must be satisfied before any distributions can be
    made to our shareholders. While we have the right to defer
    dividends on the trust preferred securities for a period of up
    to five years, if any such election is made, no dividends may be
    paid to our common or preferred shareholders during that time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are required to pay cumulative dividends on the
    $17.0&#160;million in Series&#160;A Preferred Stock issued to
    the Treasury in the TARP Capital Purchase Program at an annual
    rate of 5% for the first five years and 9% thereafter, unless we
    redeem the shares earlier. We may not declare or pay dividends
    on our common stock or repurchase shares of our common stock
    without first having paid all accrued cumulative preferred
    dividends that are due. Until January 2012, we also may not
    increase our per share common stock dividend rate or repurchase
    shares of our common shares without the Treasury&#146;s consent,
    unless the Treasury has transferred to third parties all the
    Series&#160;A Preferred Stock originally issued to&#160;it.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    future ability to pay dividends and repurchase stock is subject
    to restrictions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since we are a holding company with no significant assets other
    than the Bank and our majority-owned mortgage company, we have
    no material source of income other than dividends received from
    the Bank and the mortgage company. Therefore, our ability to pay
    dividends to our shareholders will depend on the Bank&#146;s and
    mortgage company&#146;s ability to pay dividends to us.
    Moreover, banks and financial holding companies are both subject
    to certain federal and state regulatory restrictions on cash
    dividends. We are also restricted from paying dividends if we
    have deferred payments of the interest on, or an event of
    default has occurred with respect to, our trust preferred
    securities or Series&#160;A Preferred Stock. Additionally, terms
    and conditions of our Series&#160;A Preferred Stock place
    certain restrictions and limitations on our common stock
    dividends and repurchases of our common stock. See
    &#147;DIVIDEND POLICY.&#148;
</DIV>
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    <BR>
    18
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">An
    investment is not an insured deposit.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investment in our common stock is not a bank deposit and is
    not insured or guaranteed by the FDIC or any other government
    agency. Your investment in our common stock will be subject to
    investment risk and you may lose all or part of your investment.
</DIV>

<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The net proceeds, after underwriting discounts and commissions
    and estimated expenses, to us from the sale of the common stock
    offered by this prospectus are expected to be approximately
    $28.3&#160;million. If the underwriters exercise their
    over-allotment option in full, we estimate that our net proceeds
    will be approximately $32.5&#160;million. We intend to use the
    net proceeds of this offering (i)&#160;for general corporate
    purposes, including contributing additional capital to the Bank,
    (ii)&#160;to support our ongoing and future anticipated growth,
    which may include opportunistic acquisitions of all or parts of
    other financial institutions, including FDIC-assisted
    transactions, and (iii)&#160;to position us for eventual
    redemption of our Series&#160;A Preferred Stock issued to the
    Treasury under the TARP Capital Purchase Program. We do not have
    any agreements or commitments with respect to any current
    transactions. Pending allocation of specific uses, we intend to
    invest the proceeds in short-term interest-bearing investment
    grade securities.
</DIV>
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    <BR>
    19
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<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows our capitalization and regulatory
    capital ratios as of December&#160;31, 2009 on an actual basis
    and on an as-adjusted basis to give effect to the receipt of the
    net proceeds from this offering. The as-adjusted capitalization
    assumes no exercise of the underwriters&#146; over-allotment
    option, that 5,725,191&#160;shares of common stock are sold by
    us at an offering price of $5.24 per share (based on the closing
    price of our common stock on the NASDAQ Global Market on
    February&#160;9, 2010, and that the net proceeds from the
    offering, after deducting the underwriting discounts and
    commissions and estimated offering expenses payable by us, are
    approximately $28.3&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As Adjusted(1)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>Unaudited</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Junior subordinated debt payable to unconsolidated subsidiary
    grantor trusts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Preferred stock, liquidation preference of $1,000 per share;
    2,000,000 authorized; 17,000 issued and outstanding as of
    December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,641
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,641
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common stock, authorized 50,000,000&#160;shares without par;
    issued and outstanding 8,711,495, actual; issued and outstanding
    14,436,686&#160;shares, as adjusted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common stock warrant
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    449
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    449
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated other comprehensive gain, net of tax
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non controlling interest in subsidiary
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total capitalization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    84,272
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,572
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per Common Share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Book value per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tangible book value per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Regulatory Capital Ratios&#160;&#151; Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Leverage Ratio
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.89
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.09
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Tier&#160;1 Capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.06
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.74
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total Capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.31
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.09
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Regulatory Capital Ratios&#160;&#151; Bank
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Leverage Ratio
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.37
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.86
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Tier&#160;1 Capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.57
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.61
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total Capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.96
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 11%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Assumes that 5,725,191&#160;shares of our common stock are sold
    in this offering at $5.24 per share, our closing price on
    February&#160;9, 2010, and that the net proceeds thereof are
    approximately $28.3&#160;million after deducting underwriting
    discounts and commissions and our estimated expenses. If the
    underwriters&#146; over-allotment option is exercised in full,
    net proceeds are expected to increase to approximately
    $32.5&#160;million.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    POLICY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The goals of our dividend policy and planning function are in
    accord with our subsidiary Bank&#146;s capital strategy and
    overall business plans and objectives. The following summarizes
    the general goals that pertain to our dividend management:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current and future capital adequacy is paramount in determining
    the amount of dividends we should pay to our shareholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Ensure the safety and soundness of the Bank&#146;s deposits,
    while providing an appropriate return to our shareholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Establish a dividend payout approach that provides consistency
    and opportunity for growth;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Explore new types of dividend vehicles and dividend payout
    programs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There were approximately 676 holders of our common stock as of
    December&#160;31, 2009, including those held in street name, and
    the market price on that date was $5.28 per share. Cash
    dividends of $0.06 per share were paid on each of
    January&#160;10, 2009, April&#160;10, 2009, July&#160;17, 2009,
    and October&#160;9, 2009 to shareholders of record as of
    December&#160;31, 2008, March&#160;31, 2009, June&#160;30, 2009
    and September&#160;30, 2009. Cash dividends of $0.08 per share
    were paid on each of January&#160;11, 2008, April&#160;11, 2008,
    July&#160;11, 2008 and October&#160;10, 2008 to shareholders of
    record as of December&#160;31, 2007, March&#160;31, 2008,
    June&#160;30, 2008 and September&#160;30, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently expect to pay quarterly cash dividends of at least
    $0.06 per share in the future, but our ability to pay dividends
    is subject to the policy goals listed above and certain
    regulatory requirements. The Federal Reserve Board
    (&#147;FRB&#148;) generally prohibits a financial holding
    company from declaring or paying a cash dividend which would
    impose undue pressure on the capital of subsidiary banks or
    would be funded only through borrowing or other arrangements
    that might adversely affect a financial services holding
    company&#146;s financial position. The FRB&#146;s policy is that
    a financial holding company should not continue its existing
    rate of cash dividends on its common stock unless its net income
    is sufficient to fully fund each dividend and its prospective
    rate of earnings retention appears consistent with its capital
    needs, asset quality and overall financial condition. The power
    of the board of directors of an insured depository institution
    such as the Bank to declare a cash dividend or other
    distribution with respect to capital is subject to statutory and
    regulatory restrictions which limit the amount available for
    such distribution depending upon the earnings, financial
    condition and cash needs of the institution, as well as general
    business conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the agreements between us and the
    Treasury governing the TARP Capital Purchase Program, we may not
    declare or pay any dividend or make any distribution on our
    common stock other than (i)&#160;regular quarterly dividends not
    exceeding an annual aggregate of $0.32 per share;
    (ii)&#160;dividends payable solely in shares of our common
    stock; and (iii)&#160;dividends or distributions of rights of
    junior stock in connection with a shareholder rights plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the restrictions imposed under federal law, banks
    chartered under California law generally may pay cash dividends
    only to the extent such payments do not exceed the lesser of
    retained earnings of the bank or the bank&#146;s net income for
    its last three fiscal years (less any distributions to
    shareholders during such period). In the event a bank desires to
    pay cash dividends in excess of such amount, the bank may pay a
    cash dividend with the prior approval of the Commissioner of the
    Department of Financial Institutions in an amount not exceeding
    the greatest of the bank&#146;s retained earnings, the
    bank&#146;s net income for its last fiscal year, or the
    bank&#146;s net income for its current fiscal year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Holding
    Company Dividends</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All dividends declared and distributed by us will comply with
    applicable state corporate law. The Board of Directors will
    declare dividends only if our Bank subsidiary is considered to
    have adequate and strong earnings. Dividends will be declared
    and ultimately paid only if they are covered by earnings, not
    paid by using borrowed funds, and not a result of unusual or
    nonrecurring gains. All dividends will comply with this policy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial markets and shareholders favorably view a
    consistent dividend. Future capital requirements and corporate
    plans will be considered whenever dividends are initiated,
    increased or decreased.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRICE
    RANGE OF COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents the range of high and low sale
    prices of our common stock as reported on the NASDAQ Global
    Market for the periods shown below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Sale Price per Share</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Year Ending December&#160;31, 2010</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter (through February&#160;9, 2010)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Year Ended December&#160;31, 2009</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Year Ended December&#160;31, 2008</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Year Ended December&#160;31, 2007</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, there were 676 holders of record
    of our common stock and 8,711,495&#160;shares of our common
    stock issued and outstanding. On February&#160;9, 2010, the
    closing sale price for our common stock was $5.24&#160;per
    share, as reported on the NASDAQ Global Market.
</DIV>

<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF CAPITAL STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are currently authorized to issue two classes of shares
    designated respectively &#147;Common Stock&#148; and
    &#147;Preferred Stock.&#148; The number of shares of Common
    Stock authorized is 50,000,000 and the number of shares of
    Preferred Stock authorized is 2,000,000.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock and Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Preferred Stock may be issued from time to time in one or
    more series. The Board of Directors is authorized to fix the
    number of shares of any series of Preferred Stock and to
    determine the designation of any such series. The Board of
    Directors is also authorized to determine or alter the rights,
    preferences, privileges and restrictions granted to or imposed
    upon any wholly unissued series of Preferred Stock. In addition,
    the Board of Directors is authorized, within the limits and
    restrictions stated in any resolution or resolutions of the
    Board of Directors originally fixing the number of shares
    constituting any series, to increase or decrease (but not below
    the number of shares of such series then outstanding) the number
    of shares of any such series subsequent to the issue of shares
    of that series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are authorized to issue 2,000,000&#160;shares of preferred
    stock. Preferred shares outstanding rank senior to common shares
    both as to dividends and liquidation preference but generally
    have no voting rights. Pursuant to a Letter Agreement dated
    November&#160;14, 2008, and the Securities Purchase
    Agreement&#160;&#151; Standard Terms (&#147;Securities Purchase
    Agreement&#148;) we issued to the Treasury 17,000&#160;shares of
    our Series&#160;A Preferred Stock for a total price of
    $17.0&#160;million. The Series&#160;A Preferred Stock pays
    cumulative dividends at a rate of 5% per year for the first five
    years and thereafter at a rate of 9% per year. Except under
    limited circumstances, the Series&#160;A Preferred Stock is
    non-voting.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If dividends on the Series&#160;A Preferred Stock have not been
    paid for an aggregate of six quarterly dividend periods (whether
    or not consecutive), the holders of the Series&#160;A Preferred
    Stock will be entitled to elect two additional members of our
    board of directors, at the next annual meeting (or at a special
    meeting called for the purpose of electing the preferred stock
    directors prior to the next annual meeting), and at each
    subsequent annual meeting until all accrued and unpaid dividends
    for all past dividend periods have been paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to November&#160;14, 2011, unless we have redeemed the
    Series&#160;A Preferred Stock or the Treasury has transferred
    the Series&#160;A Preferred Stock to a third party, the consent
    of the Treasury will be required for us to increase our common
    stock dividend or repurchase our common stock or other equity or
    capital securities, other than in connection with benefit plans
    consistent with past practice and certain other circumstances
    specified in the Securities Purchase Agreement. A consequence of
    the Series&#160;A Preferred Stock purchase includes certain
    restrictions on executive compensation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of its purchase of the Series&#160;A Preferred Stock,
    the Treasury received a warrant (&#147;Warrant&#148;) to
    purchase 405,405&#160;shares of our common stock at an initial
    per share exercise price of $6.29. The Warrant provides for the
    adjustment of the exercise price and the number of shares of our
    common stock issuable upon exercise pursuant to customary
    anti-dilution provisions, such as upon stock splits or
    distributions of securities or other assets to holders of our
    common stock, and upon certain issuances of our common stock at
    or below a specified price relative to the initial exercise
    price. The Warrant expires ten years from the issuance date.
    Pursuant to the Securities Purchase Agreement, the Treasury has
    agreed not to exercise voting power with respect to any shares
    of common stock issued upon exercise of the Warrant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Both the Series&#160;A Preferred Stock and Warrant will be
    accounted for as components of Tier&#160;1 capital. The
    Series&#160;A Preferred Stock and the Warrant were issued in a
    private placement exempt from registration pursuant to
    Section&#160;4(2) of the Securities Act. Upon the request of the
    Treasury at any time, we have agreed to promptly enter into a
    deposit arrangement pursuant to which the Series&#160;A
    Preferred Stock may be deposited and depositary shares
    (&#147;Depositary Shares&#148;) may be issued. Neither the
    Series&#160;A Preferred Stock nor the Warrant will be subject to
    any contractual restrictions on transfer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to November&#160;14, 2011, unless we have redeemed the
    Series&#160;A Preferred Stock or the Treasury has transferred
    the Series&#160;A Preferred Stock to a third party, the consent
    of the Treasury will be required for us to (i)&#160;declare or
    pay any dividend or make any distribution on our common stock
    (other than regular quarterly cash dividends of not more than
    $0.08 per share of common stock) or (ii)&#160;redeem, purchase
    or acquire any shares of the Company&#146;s common stock or
    other equity or capital securities, other than in connection
    with benefit plans consistent with past practice and certain
    other circumstances specified in the Securities Purchase
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The proceeds from the Treasury were allocated based on the
    relative fair value of the Warrant as compared with the fair
    value of the preferred stock. The fair value of the Warrant was
    determined using a valuation model which incorporates
    assumptions including our common stock price, dividend yield,
    stock price volatility and the risk-free interest rate. The fair
    value is determined based on assumptions regarding the discount
    rate (market rate) on our Series&#160;A Preferred Stock which
    was estimated to be approximately 9% at the date of issuance.
    The discount will be accreted to par value over a five-year
    term, which is the expected life of our Series&#160;A Preferred
    Stock. Capital Purchase Program participants may &#147;opt
    out&#148; by repaying the capital without raising additional
    capital subject to consultation with the appropriate federal
    regulator.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to preferences that may be applicable to Preferred
    Stock, the holders of common stock share equally on a per share
    basis any dividends declared by the board of directors out of
    funds legally available. If the Company is liquidated, dissolved
    or wound up, the holders of our common stock will be entitled to
    a ratable share of any distribution to shareholders, after
    satisfaction of all of our liabilities and of the prior rights
    of then outstanding preferred stock. The common stock does not
    include preemptive or other subscription rights to purchase
    additional shares.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of our common stock have the right to vote on matters
    submitted to a vote of our shareholders. Under California
    corporate law, holders of common stock are entitled to exercise
    such voting rights on a cumulative basis, unless the Company
    adopts a provision in its Articles of Incorporation or By-Laws
    to eliminate cumulative voting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with Section&#160;301.5 of the California
    Corporations Code, a corporation whose shares are listed for
    trading on an approved exchange may eliminate cumulative voting
    for directors by amendment to its articles of incorporation or
    its bylaws. Cumulative voting means that each shareholder may
    cumulate, and cast, a number of votes equal to number of shares
    held, multiplied by the number of directors to be elected. Under
    cumulative voting, a shareholder may withhold votes from certain
    candidates and cast all such cumulated votes for a single
    candidate or split the cumulated votes between multiple
    candidates. At our 2010 Annual Meeting of Shareholders we intend
    to, among other things, submit a proposal to our shareholders to
    amend our By-Laws to eliminate cumulative voting for directors
    to the extent allowed under the California Corporations Code.
    The amendment to eliminate cumulative voting for directors must
    be approved by the holders of a majority of outstanding shares
    of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common stock is listed on the NASDAQ Global Market under the
    symbol &#147;BOCH.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent and Registrar</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transfer agent and registrar for our common stock is
    Registrar and Transfer Company, 10 Commerce Drive, Cranford, New
    Jersey 07016. Telephone
    <FONT style="white-space: nowrap">(800)&#160;368-5948.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Restrictions
    on Ownership</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank Holding Company Act (&#147;BHCA&#148;) generally
    prohibits any company that is not engaged in banking activities
    and activities that are permissible for a bank holding company
    or a financial holding company from acquiring control of us. Any
    holder of 25% or more of our common stock, or a holder of 5% or
    more if such holder otherwise exercises a &#147;controlling
    influence&#148; over us, will generally deemed to control us,
    and may be subject to regulation as a bank holding company under
    the BHCA. Any existing bank holding company would need the prior
    approval of the Federal Reserve Board before acquiring 5% or
    more of our voting stock. In addition, the Change in Bank
    Control Act of 1978, as amended, prohibits a person or group of
    persons from acquiring control of a bank holding company unless
    the Federal Reserve Board has been notified and has not objected
    to the transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under a rebuttable presumption established by the Federal
    Reserve Board, the acquisition of 10% or more of a class of
    voting stock of a bank holding company with a class of
    securities registered under Section&#160;12 of the Exchange Act,
    such as ours, could constitute acquisition of control of the
    bank holding company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the California Financial Code, no person shall, directly
    or indirectly, acquire control of a California state bank or its
    holding company unless the Department of Financial Institutions
    has approved such acquisition of control. A person would be
    deemed to have acquired control of us if such person, directly
    or indirectly, has the power (i)&#160;to vote 25% or more of our
    voting power, or (ii)&#160;to direct or cause the direction of
    the management and our policies. For purposes of this law, a
    person who directly or indirectly owns or controls 10% or more
    of our outstanding common stock would be presumed to control of
    us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to approve a merger or similar business combination
    with the owner of 20% or more of our common stock (an
    &#147;Interested Shareholder&#148;), our Articles of
    Incorporation contain provisions that would require a
    supermajority vote of
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the outstanding shares of the common stock (excluding the
    shares held by the Interested Shareholder or its affiliates).
    These provisions further require that the per share
    consideration to be paid in such a transaction would have to
    equal or exceed the greater of (a)&#160;the highest per share
    price paid by the Interested Shareholder (i)&#160;within two
    years of the transaction proposal announcement date, or
    (ii)&#160;the date the Interested Shareholder acquired a 20%
    -plus ownership interest (if the acquisition occurred less than
    two years before the transaction announcement) and (b)&#160;the
    fair market value of the Common Stock on (i)&#160;the
    transaction proposal announcement date, or (ii)&#160;the date
    the Interested Shareholder acquired a 20% -plus ownership
    interest (if the acquisition occurred less than two years before
    the transaction announcement).
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are offering the shares of our common stock described in this
    prospectus in an underwritten offering in which Howe Barnes
    Hoefer&#160;&#038; Arnett, Inc. is acting as representative of
    the underwriters. We have entered into an underwriting agreement
    with Howe Barnes Hoefer&#160;&#038; Arnett, Inc., acting as
    representative of the underwriters named below, with respect to
    the common stock being offered. Subject to the terms and
    conditions contained in the underwriting agreement, the
    underwriters have agreed to purchase the respective number of
    shares of our common stock set forth opposite its name below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Howe Barnes Hoefer&#160;&#038; Arnett, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 36pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms and conditions of the underwriting agreement,
    the underwriters are committed to accept and pay for all of the
    shares, if any are taken. In the underwriting agreement, the
    obligations of the underwriters are subject to approval of
    certain legal matters by their counsel, including the
    authorization and the validity of the shares, and to other
    conditions contained in the underwriting agreement, such as
    receipt by the underwriters of officers&#146; certificates and
    legal opinions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Over-Allotment
    Option</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have granted to the underwriters an option, exercisable
    within 30&#160;days after the date of this prospectus, to
    purchase up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    additional shares of our common stock. The underwriters may
    exercise the option only for the purpose of covering
    over-allotments, if any, made in connection with the
    distribution of the shares being offered by this prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our executive officers and directors have agreed that for a
    period of 90&#160;days from the date of this prospectus, none of
    our executive officers or directors will, without the prior
    written consent of Howe Barnes Hoefer&#160;&#038; Arnett, Inc.,
    as the representative of the underwriters, subject to certain
    exceptions, sell, offer to sell or otherwise dispose of or
    transfer any shares of our common stock or any securities
    convertible into or exercisable or exchangeable for our common
    stock. Howe Barnes Hoefer&#160;&#038; Arnett, Inc., in its sole
    discretion, may release the securities subject to these
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements at any time without notice.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Commissions
    and Expenses</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters propose to offer the shares of our common stock
    directly to the public at the public offering price set forth
    above, and to certain securities dealers at this price, less a
    concession not in excess of $&#160;&#160;&#160;&#160;&#160; per
    share. The underwriters may allow, and the selected dealers may
    re-allow, a concession not in excess of
    $&#160;&#160;&#160;&#160;&#160; per share to certain brokers and
    dealers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below shows the per share and total underwriting
    discounts and commissions that we will pay to the underwriters
    and the proceeds we will receive before expenses. We estimate
    that the total expenses of this offering payable by us, not
    including the underwriting discounts and commissions but
    including our reimbursement of certain expenses of the
    underwriters, will be approximately
    $&#160;&#160;&#160;&#160;&#160;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total Without<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total with<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercised</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercised</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34,500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds to us, before expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The offering of the shares of our common stock will be made for
    delivery when, as and if accepted by the underwriters and
    subject to prior sale and to withdrawal, cancellation or
    modification of the offering without notice. The underwriters
    reserve the right to reject any order for the purchase of the
    shares. After the shares are released for sale to the public,
    the underwriters may, from time to time, change the offering
    price and other selling terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither we nor the underwriters can assure you that an active
    and liquid market will develop for the shares or, if developed,
    that the market will continue. The offering price and
    distribution rate was determined by negotiations between the
    underwriters and us, and the offering price of the shares may
    not be indicative of the market price following the offering.
    The underwriters will have no obligation to make a market in the
    shares, however, and may cease market-making activities, if
    commenced, at any time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnity</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the underwriting agreement, we have agreed to indemnify
    the underwriters against certain liabilities, including
    liabilities under the Securities Act of 1933, as amended
    (&#147;Securities Act&#148;) and to contribute to payments that
    the underwriters may be required to make in respect of these
    liabilities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stabilization</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, the underwriters may engage in
    stabilizing transactions, over-allotment transactions, covering
    transactions, and penalty bids in accordance with
    Regulation&#160;M under the Securities Exchange Act of 1934, as
    amended (the &#147;Exchange Act&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Stabilizing transactions permit bids to purchase the underlying
    security so long as the stabilizing bids do not exceed a
    specified maximum.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Over-allotment involves sales by the underwriters of shares in
    excess of the number of shares the underwriters are obligated to
    purchase, which creates a short position. The short position may
    be either a covered short position or a naked short position. In
    a covered short position, the number of shares over-allotted by
    the underwriters is not greater than the number of shares that
    they may purchase in the over-allotment option. In a naked short
    position, the number of shares involved is greater than the
    number of shares in the over-allotment option. The underwriters
    may close out any covered short position by either exercising
    their over-allotment option or purchasing shares in the open
    market.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Covering transactions involve the purchase of common stock in
    the open market after the distribution has been completed in
    order to cover short positions. In determining the source of
    shares to close out the short position, the underwriters will
    consider, among other things, the price of shares available for
    purchase in the open market as compared to the price at which
    they may purchase shares through the over-allotment option. If
    the underwriters sell more shares than could be covered by the
    over-allotment option, a naked short position, the position can
    only be closed out by buying shares in the open market. A naked
    short position is more likely to be created if the underwriters
    are concerned that there could be downward pressure on the price
    of the shares in the open market after pricing that could
    adversely affect investors who purchase in this offering.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Penalty bids permit the underwriters to reclaim a selling
    concession from a selected dealer when the common stock
    originally sold by the selected dealer is purchased in a
    stabilizing covering transaction to cover short positions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These stabilizing transactions, covering transactions and
    penalty bids may have the effect of raising or maintaining the
    market price of our common stock or preventing or retarding a
    decline in the market price of our common stock. As a result,
    the price of our common stock may be higher than the price that
    might otherwise exist in the open market. Neither we nor the
    underwriters make any representation or prediction as to the
    effect that the transactions described above may have on the
    price of our common stock. These transactions may be effected on
    the NASDAQ Global Market or otherwise and, if commenced, may be
    discontinued at any time.
</DIV>
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    <BR>
    26
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Passive
    Market Making</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, the underwriters and selected
    dealers, if any, who are qualified market makers on the NASDAQ
    Global Market, may engage in passive market making transactions
    in our common stock on the NASDAQ Global Market in accordance
    with Rule&#160;103 of Regulation&#160;M under the Exchange Act.
    Rule&#160;103 permits passive market making activity by the
    participants in our common stock offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Passive market making may occur before the pricing of our
    offering, or before the commencement of offers or sales of our
    common stock. Each passive market maker must comply with
    applicable volume and price limitations and must be identified
    as a passive market maker. In general, a passive market maker
    must display its bid at a price not in excess of the highest
    independent bid for the security. If all independent bids are
    lowered below the bid of the passive market maker, however, the
    bid must then be lowered when purchase limits are exceeded. Net
    purchases by a passive market maker on each day are limited to a
    specified percentage of the passive market maker&#146;s average
    daily trading volume in the common stock during a specified
    period and must be discontinued when that limit is reached. The
    underwriters and other dealers are not required to engage in
    passive market making and may end passive market making
    activities at any time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Affiliations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Howe Barnes Hoefer&#160;&#038; Arnett, Inc. has performed and
    expects to continue to perform financial advisory and investment
    banking services for us in the ordinary course of its business,
    and may have received, and may continue to receive, compensation
    for such services.
</DIV>

<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the securities offered by this prospectus will
    be passed upon for us by Downey Brand LLP. Certain legal matters
    will be passed upon for the underwriters by Graham&#160;&#038;
    Dunn PC.
</DIV>

<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements incorporated in this
    prospectus by reference from the Bank of Commerce Holdings
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008 have been audited by
    Moss Adams LLP, an independent registered public accounting
    firm, as stated in their report thereon included therein, which
    is incorporated herein by reference. Such consolidated financial
    statements have been so incorporated in reliance upon the report
    of such firm given upon their authority as experts in accounting
    and auditing.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Shares of
    Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="f54634orf5463405.gif" alt="(BANK OF COMMERCE HOLDINGS LOGO)"><FONT style="font-size: 14pt">
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Howe
    Barnes Hoefer&#160;&#038; Arnett</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    NOT REQUIRED IN THE PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;13.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Expenses of Issuance and Distribution</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the various expenses to be
    incurred in connection with the sale and distribution of the
    shares of common stock being registered hereby, all of which
    will be borne by us (except any underwriting discounts and
    commissions and expenses incurred for brokerage, accounting, tax
    or legal services or any other expenses incurred in disposing of
    the shares). All amounts shown are estimates except the SEC
    registration fee.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SEC registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FINRA filing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    200,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Miscellaneous expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,590
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    250,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;14.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Agents of the Corporation</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Agent&#148; means any person who is or was a director,
    officer, employee or other agent of the company, or is or was
    serving at the request of the Company as a director, officer,
    employee or agent of another foreign or domestic corporation,
    partnership, joint venture, trust or other enterprise, or was a
    director, officer, employee or agent of a foreign or domestic
    corporation that was a predecessor corporation of the Company or
    of another enterprise at the request of such predecessor
    Company; &#147;proceeding&#148; means any threatened, pending or
    completed action or proceeding, whether civil, criminal,
    administrative or investigative; and &#147;expenses&#148;
    include without limitation attorneys&#146; fees and any expenses
    of establishing a right to indemnification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company shall indemnify any person who was or is a party or
    is threatened to be made a party to any proceeding (other than
    an action by or in the right of the Company to procure a
    judgment in its favor) by reason of the fact that such person is
    or was an agent of the Company, against expenses, judgments,
    fines, settlements and other amounts actually and reasonably
    incurred in connection with such proceeding if such person acted
    in good faith and in a manner such person reasonably believed to
    be in the best interests of the Company and, in the case of a
    criminal proceeding, if such person had no reasonable cause to
    believe that such person&#146;s conduct was unlawful. The
    termination of any proceeding by judgment, order, settlement,
    conviction or upon a plea of <I>nolo contendere </I>or its
    equivalent shall not, of itself, create a presumption that such
    person did not act in good faith and in a manner which such
    person reasonably believed to be in the best interests of the
    Company or that such person had reasonable cause to believe that
    such person&#146;s conduct was unlawful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company shall indemnify any person who was or is a party or
    is threatened to be made a party to any threatened, pending or
    completed action by or in the right of the Company to procure a
    judgment in its favor by reason of the fact that such person is
    or was an agent of the Company, against expenses actually and
    reasonably incurred by such person in connection with the
    defense or settlement of such action if such person acted in
    good faith, in a manner such person believed to be in the best
    interests of the Company and with such care, including
    reasonable inquiry, as an ordinarily prudent person in a like
    position would use under similar circumstances. The Board of
    Directors of the Company will provide for the indemnification of
    agents to the fullest extent permissible under California law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No indemnification will be made:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;In respect of any claim, issue or matter as to which
    such person shall have been adjudged to be liable to the Company
    in the performance of such person&#146;s duty to the Company,
    unless and only to the extent that the court in which such
    proceeding is or was pending shall determine upon application
    that, in view of all the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    circumstances of the case, such person is fairly and reasonably
    entitled to indemnity for the expenses which such court shall
    determine;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Of amounts paid in settling or otherwise disposing of a
    threatened or pending action, with or without court
    approval;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;Of expenses incurred in defending a threatened or
    pending action, which is settled or otherwise disposed of
    without court approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent that an agent of the Company has been successful
    on the merits in defense of any proceeding or in defense of any
    claim, issue or matter therein, the agent shall be indemnified
    against expenses actually and reasonably incurred by the agent
    in connection therewith.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any indemnification shall be made by the Company only if
    authorized in the specific case, upon a determination that
    indemnification of the agent is proper in the circumstances
    because the agent has met the applicable standard of conduct, by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;A majority vote of a quorum consisting of directors who
    are not parties to such proceeding;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Approval or ratification by the affirmative vote of a
    majority of the shares of the Company represented and voting at
    a duly held meeting at which a quorum is present (which shares
    voting affirmatively also constitute at least a majority of the
    required quorum) or by the written consent of holders of a
    majority of the outstanding shares entitled to vote; for such
    purpose, the shares owned by the person to be indemnified shall
    not be considered outstanding or entitled to vote
    thereon;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;The court in which such proceeding is or was pending,
    upon application made by the Company or the agent or the
    attorney or other person rendering services in connection with
    the defense, whether or not such application by the agent,
    attorney or other person is opposed by the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expenses incurred in defending any proceeding may be advanced by
    the Company prior to the final disposition of such proceeding
    upon receipt of an undertaking by or on behalf of the agent to
    repay such amount unless it shall be determined ultimately that
    the agent is entitled to be indemnified as authorized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Nothing shall affect any right to indemnification to which
    persons other than directors and officers of the Company or any
    subsidiary thereof may be entitled by contract or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No indemnification or advance shall be made in any circumstance
    where it appears:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;That it would be inconsistent with a provision of the
    Articles of Incorporation, as amended, a resolution of the
    shareholders or an agreement in effect at the time of the
    accrual of the alleged cause of action asserted in the
    proceeding in which the expenses were incurred or other amounts
    were paid, which prohibits or otherwise limits
    indemnification;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;That it would be inconsistent with any condition
    expressly imposed by a court in approving a settlement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;15.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Recent
    Sales of Unregistered Securities.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the last three years, the Company has not sold any shares
    of common stock without registration under the Securities Act.
    Issuance of 17,000&#160;shares of the Company&#146;s
    Series&#160;A Preferred Stock and a warrant to purchase
    405,405&#160;shares of the Company&#146;s common stock is
    subject to an exemption from registration pursuant to
    Section&#160;4(2) of the Securities Act and is described under
    the caption &#147;Description of Capital Stock&#148; and is
    incorporated into this item by reference.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Document</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Articles of Incorporation as amended, incorporated by reference
    to EX-3.1 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed&#160;12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Bylaws as amended, incorporated by reference to EX-3.1 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 05/15/2007.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Specimen Common Stock Certificate, incorporated by reference to
    EX-4.1 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed&#160;12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of determination for the Series&#160;A Preferred
    Stock, incorporated by reference to EX-4.1 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 11/19/2008.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Certificate for the Series&#160;A Preferred Stock,
    incorporated by reference to EX-4.2 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 11/19/2008.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Warrant for purchase of shares of Common stock, incorporated by
    reference to EX-4.3 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 11/19/2008.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Legal opinion of Downey Brand LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter Agreement, dated November&#160;14, 2008, between Bank of
    Commerce Holdings and the United States Department of the
    Treasury, which includes the Securities Purchase
    Agreement&#160;&#151; Standard terms attached thereto, with
    respect to the issuance of the Series&#160;A Preferred Stock and
    Warrant, incorporated by reference to EX-10.1 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 11/19/2008.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Office Building Lease between Gairn Partnership/First Avenue
    Square and Redding Bank of Commerce dated July&#160;16, 1998,
    incorporated by reference to EX-10.2 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    1998 Stock Option Plan, incorporated by reference to EX-10.3 of
    the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Incentive Stock Option Agreement used in connection with
    1998 Stock Option Plan, incorporated by reference to EX-10.4 of
    the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-statutory Stock Option Agreement used in connection
    with 1998 Stock Option Plan, incorporated by reference to
    EX-10.5 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Directors Deferred Compensation Plan, incorporated by reference
    to EX-10.7 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Deferred Compensation Agreement Used In Connection With
    Directors Deferred Compensation Plan, incorporated by reference
    to EX-10.8 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment contracts dated April 2001, incorporated by reference
    to EX-10.10 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed&#160;9/27/2001.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Affiliated Business Arrangement Agreement, incorporated by
    reference to EX-10.11 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 8/20/2004.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Office building lease by and between Waybright #3 Partners and
    Redding Bank of Commerce dated 9/23/2005, incorporated by
    reference to EX-99.1 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 9/26/2005.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Employment contracts dated April 2001, incorporated
    by reference to EX-99.1 &#038;99.2 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 12/21/2005.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Change in Control Agreements, incorporated by reference to
    EX-99.1-99.4 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed&#160;12/21/2005.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Blais, incorporated by reference
    to EX-10.15 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 12/19/2006.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Moty, incorporated by reference
    to EX-10.16 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 12/19/2006.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .17
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Eslick, incorporated by
    reference to EX-10.17 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 12/19/2006.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .19
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement&#160;&#151; Miles, incorporated by
    reference to EX-10.19 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 1/03/07.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .21
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Miles, incorporated by reference
    to EX-10.21 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 1/03/07.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .22
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement&#160;&#151; Moty, incorporated by reference
    to EX-10.22 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 9/27/07.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .23
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Moty, incorporated by reference
    to EX-10.23 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 9/28/07.
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Document</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .24
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment contracts dated October&#160;14, 2008, incorporated
    by reference to EX-10.22 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 10/17/08.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .25
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement&#160;&#151; Matranga, incorporated by
    reference to EX-10.22 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed&#160;11/26/08.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    11
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Statement re: Computation of Earnings per Share.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    14
</TD>
<TD nowrap align="left" valign="top">
    .0
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Bank of Commerce Code of Ethics, incorporated by reference to
    EX-10.12 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed&#160;2/26/2003.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    16
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter on Change in Certifying Accountants, incorporated by
    reference to EX-16.1 of the
    <FONT style="white-space: nowrap">Form&#160;10-12</FONT>
    filed&#160;12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Subsidiaries of the Company, incorporated by reference to
    EX-21.1 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Moss Adams LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Downey Brand LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Power of Attorney (see page II-5 of this Registration
    Statement).
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain instruments with respect to long-term debt of the
    registrant and consolidated subsidiaries are not filed herewith
    pursuant to Item&#160;601(b)(4)(iii) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    since the total amount of securities authorized under each such
    instrument does not exceed 10% of the total assets of the
    registrant and its subsidiaries on a consolidated basis. The
    registrant agrees to furnish a copy of any such instrument to
    the SEC upon request.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;17.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Undertakings</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Insofar as indemnification for liabilities arising under the
    Securities Act of 1933 (&#147;Securities Act&#148;) may be
    permitted to directors, officers and controlling persons of the
    registrant pursuant to the foregoing provisions, or otherwise,
    the registrant has been advised that in the opinion of the
    Securities and Exchange Commission such indemnification is
    against public policy as expressed in the Securities Act and is,
    therefore, unenforceable. In the event that a claim for
    indemnification against such liabilities (other than the payment
    by the registrant of expenses incurred or paid by a director,
    officer or controlling person of the registrant in the
    successful defense of any action, suit or proceeding) is
    asserted by such director, officer or controlling person in
    connection with the securities being registered, the registrant
    will, unless in the opinion of its counsel the matter has been
    settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Securities Act and will be governed by the final
    adjudication of such issue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned registrant hereby undertakes that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;For purposes of determining any liability under the
    Securities Act, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule&#160;430A and contained in a form of
    prospectus filed by the registrant pursuant to Rule&#160;424(b)
    (1)&#160;or (4)&#160;or 497(h) under the Securities Act shall be
    deemed to be part of this registration statement as of the time
    it was declared effective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;For the purpose of determining any liability under the
    Securities Act, each post-effective amendment that contains a
    form of prospectus shall be deemed to be a new registration
    statement relating to the securities offered therein, and the
    offering of such securities at that time shall be deemed to be
    the initial bona fide offering thereof.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 93%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Redding, State of California, on
    February&#160;11, 2010.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 42%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>BANK OF COMMERCE HOLDINGS</B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="42%"></TD>
    <TD width="4%"></TD>
    <TD width="54%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">PATRICK
    J. MOTY</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 46%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="center" style="margin-left: 46%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Patrick J. Moty
</DIV>

<DIV align="center" style="margin-left: 46%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>President&#160;&#038; Chief Executive Officer</I>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">POWER OF
    ATTORNEY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    KNOW ALL MEN BY THESE PRESENTS, that each person whose signature
    appears below does hereby constitute and appoint Patrick J. Moty
    and Samuel D. Jimenez, or either of them, as his true and lawful
    attorneys-in-fact and agents, with full power of substitution
    and re-substitution, for him and in his name, place and stead,
    in any and all capacities, to sign this registration statement
    (including all pre-effective and post-effective amendments
    thereto and all registration statements filed pursuant to
    Rule&#160;462(b) which incorporate this registration statement
    by reference), and to file the same, with all exhibits thereto,
    and other documents in connection therewith, with the Securities
    and Exchange Commission, granting unto said attorneys-in-fact
    and agents, and each of them, full power and authority to do and
    perform each and every act and thing requisite and necessary to
    be done in connection therewith as fully to all intents and
    purposes as he might or could do in person, hereby ratifying and
    confirming that all said attorneys-in-fact and agents, or their
    substitute or substitutes may lawfully do or cause to be done by
    virtue hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS WHEREOF, each of the undersigned has executed this
    Power of Attorney as of the date indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed below by the following
    persons on behalf of the registrant and in the capacities
    indicated on February&#160;11, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="56%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">PATRICK
    J. MOTY</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    President, Chief Executive Officer and Director<BR>
    (Principal Executive Officer)
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">SAMUEL
    D. JIMENEZ</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Senior Vice President and Chief Financial Officer<BR>
    (Principal Financial and Accounting Officer)
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">KENNETH
    R. GIFFORD, JR.</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chairman of the Board of Directors
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">ORIN
    BENNETT</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">DAVE
    BONUCCELLI</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">GARY
    BURKS</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">RUSSELL
    L. DUCLOS</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">JON
    W. HALFHIDE</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">DAVID
    H. SCOTT</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">LYLE
    L. TULLIS</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></U></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Document</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Articles of Incorporation as amended, incorporated by reference
    to EX-3.1 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed&#160;12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Bylaws as amended, incorporated by reference to EX-3.1 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 05/15/2007.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Specimen Common Stock Certificate, incorporated by reference to
    EX-4.1 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed&#160;12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of determination for the Series&#160;A Preferred
    Stock, incorporated by reference to EX-4.1 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 11/19/2008.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Certificate for the Series&#160;A Preferred Stock,
    incorporated by reference to EX-4.2 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 11/19/2008.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Warrant for purchase of shares of Common stock, incorporated by
    reference to EX-4.3 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 11/19/2008.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Legal opinion of Downey Brand LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter Agreement, dated November&#160;14, 2008, between Bank of
    Commerce Holdings and the United States Department of the
    Treasury, which includes the Securities Purchase
    Agreement&#160;&#151; Standard terms attached thereto, with
    respect to the issuance of the Series&#160;A Preferred Stock and
    Warrant, incorporated by reference to EX-10.1 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 11/19/2008.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Office Building Lease between Garian Partnership/First Avenue
    Square and Redding Bank of Commerce dated July&#160;16, 1998,
    incorporated by reference to EX-10.2 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    1998 Stock Option Plan, incorporated by reference to EX-10.3 of
    the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Incentive Stock Option Agreement used in connection with
    1998 Stock Option Plan, incorporated by reference to EX-10.4 of
    the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-statutory Stock Option Agreement used in connection
    with 1998 Stock Option Plan, incorporated by reference to
    EX-10.5 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Directors Deferred Compensation Plan, incorporated by reference
    to EX-10.7 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed&#160;12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Deferred Compensation Agreement Used In Connection With
    Directors Deferred Compensation Plan, incorporated by reference
    to EX-10.8 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment contracts dated April 2001, incorporated by reference
    to EX-10.10 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed&#160;9/27/2001.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Affiliated Business Arrangement Agreement, incorporated by
    reference to EX-10.11 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 8/20/2004.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Office building lease by and between Wainright #3 Partners and
    Redding Bank of Commerce dated&#160;9/23/2005, incorporated by
    reference to EX-99.1 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 9/26/2005.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amendment to Employment contracts dated April 2001, incorporated
    by reference to EX-99.1 &#038;99.2 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 12/21/2005.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Change in Control Agreements, incorporated by reference to
    EX-99.1-99.4 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed&#160;12/21/2005.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Blais, incorporated by reference
    to EX-10.15 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 12/19/2006.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Moty, incorporated by reference
    to EX-10.16 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 12/19/2006.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .17
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Eslick, incorporated by
    reference to EX-10.17 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 12/19/2006.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .19
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement&#160;&#151; Miles, incorporated by
    reference to EX-10.19 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 1/03/07.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .21
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Miles, incorporated by reference
    to EX-10.21 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 1/03/07.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .22
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement&#160;&#151; Moty, incorporated by reference
    to EX-10.22 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 9/27/07.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .23
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Salary Continuation&#160;&#151; Moty, incorporated by reference
    to EX-10.23 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 9/28/07.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .24
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment contracts dated October&#160;14, 2008, incorporated
    by reference to EX-10.22 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed 10/17/08.
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="91%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Document</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .25
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement&#160;&#151; Matranga, incorporated by
    reference to EX-10.22 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed&#160;11/26/08.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    11
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Statement re: Computation of Earnings per Share.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    14
</TD>
<TD nowrap align="left" valign="top">
    .0
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Bank of Commerce Code of Ethics, incorporated by reference to
    EX-10.12 of the
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed&#160;2/26/2003.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    16
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter on Change in Certifying Accountants, incorporated by
    reference to EX-16.1 of the
    <FONT style="white-space: nowrap">Form&#160;10-12</FONT>
    filed&#160;12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Subsidiaries of the Company, incorporated by reference to
    EX-21.1 of the
    <FONT style="white-space: nowrap">Form&#160;10-12G</FONT>
    filed 12/4/1998.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Moss Adams LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Downey Brand LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Power of Attorney (see
    <FONT style="white-space: nowrap">page&#160;II-5</FONT>
    of this Registration Statement).
</TD>
</TR>
</TABLE>

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    * </TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment.</TD>
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{"company-data": {"conformed-name": "Bank of Commerce Holdings", "cik": "0000702513", "assigned-sic": "6022", "irs-number": "942823865", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-164863", "film-number": "10591835"}, "business-address": {"street1": "1951 CHURN CREEK ROAD", "city": "REDDING", "state": "CA", "zip": "96002", "phone": "5302243333"}, "mail-address": {"street1": "1951 CHURN CREEK ROAD", "city": "REDDING", "state": "CA", "zip": "96002"}, "former-company": {"former-conformed-name": "REDDING BANCORP", "date-changed": "19920703"}}
sv1
Table of Contents
As filed with the Securities and Exchange Commission on
    February 11, 2010.
Registration
No. 333-
UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
Washington, D.C.
    20549
Form S-1
REGISTRATION
    STATEMENT
UNDER
THE SECURITIES ACT OF
    1933
BANK OF COMMERCE
    HOLDINGS
(Exact name of registrant as
    specified in its charter)
California
6022
94-2823865
(State or other jurisdiction
    of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
1951 Churn Creek Road Redding, California 96002,
(530) 722-3939
(Address, including zip code,
    and telephone number, including area code, of Registrants'
    principal executive offices)
Patrick J. Moty
President and Chief Executive Officer
Bank of Commerce Holdings
1951 Churn Creek Road
Redding, California 96002
(530) 722-3953
(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)
Copies to:
Bruce Dravis
Downey Brand LLP
621 Capitol Mall
18
th
Floor
Sacramento, California 95814
(916) 444-1000
Stephen M. Klein
Graham & Dunn PC
Pier 70
2801 Alaskan Way — Suite 300
Seattle, Washington 98121
(206) 624-8300
Approximate date of commencement of proposed sale of the
    securities to the public:
As soon as practicable
    after this Registration Statement becomes effective
If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule 415 under the Securities Act of 1933, check the
    following
    box.
o
If this Form is filed to register additional securities for an
    offering pursuant to Rule 462(b) under the Securities Act,
    please check the following box and list the Securities Act
    registration statement number of the earlier effective
    registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    "large accelerated filer," "accelerated
    filer" and "smaller reporting company" in
Rule 12b-2
of the Exchange Act. (Check one):
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
þ
Smaller reporting company
o
(Do not check if a smaller reporting company)
CALCULATION OF REGISTRATION FEE
Proposed Maximum
Amount of
Title of Each Class of
Aggregate Offering
Registration
Securities to be Registered
Price(1)(2)
Fee
Common Stock, no par value per share
$
34,500,000
$
2,460.00
(1)
Estimated solely for the purpose of determining the amount of
    the registration fee in accordance with Rule 457(o) under
    the Securities Act of 1933, as amended.
(2)
Includes offering price of shares that the underwriters have the
    option to purchase to cover over-allotments, if any.
The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section 8(a)
    of the Securities Act of 1933, as amended, or until this
    Registration Statement shall become effective on such date as
    the Commission, acting pursuant to said Section 8(a), may
    determine.
Table of Contents
The
information in this prospectus is not complete and may be
changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these
securities and it is not soliciting an offer to buy these
securities in any jurisdiction where the offer or sale is not
permitted.
SUBJECT TO COMPLETION, DATED
    FEBRUARY 11, 2010
PRELIMINARY PROSPECTUS
Shares
Common Stock
We are
    offering           shares
    of our common stock, no par value per share. Our common stock is
    traded on the NASDAQ Global Market under the symbol
    "BOCH." On February 9, 2010, the last reported
    sale price of our common stock on the NASDAQ Global Market was
    $5.24 per share.
These shares of common stock are not savings accounts,
    deposits, or other obligations of our bank subsidiary or any of
    our non-bank subsidiaries and are not insured by the Federal
    Deposit Insurance Corporation or any other governmental
    agency.
Investing in our common stock involves risks. See "RISK
    FACTORS" beginning on page 8 to read about factors you
    should consider before buying our common stock.
Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.
Per Share
Total
Public offering price
$
$
30,000,000
Underwriting discounts and commissions
$
$
Proceeds to Bank of Commerce Holdings (before expenses)
$
$
The underwriters also may purchase up to an
    additional           shares
    of our common stock within 30 days of the date of this
    prospectus to cover over-allotments, if any.
The underwriters expect to deliver the common stock in
    book-entry form only, through the facilities of The Depository
    Trust Company, against payment on or
    about          ,
    2010.
Howe
    Barnes Hoefer & Arnett
The date of this prospectus
    is          ,
    2010
Table of Contents
Bank of
    Commerce Holdings
•
Churn Creek Road
•
Placer Street
•
Buenaventura Boulevard
•
Eureka Road
TABLE OF
    CONTENTS
Page
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
    STATEMENTS
ii
ABOUT THIS PROSPECTUS
iii
WHERE YOU CAN FIND MORE INFORMATION
iii
PROSPECTUS SUMMARY
1
SUMMARY SELECTED CONSOLIDATED FINANCIAL
    INFORMATION
6
RISK FACTORS
8
USE OF PROCEEDS
19
CAPITALIZATION
20
DIVIDEND POLICY
21
PRICE RANGE OF COMMON STOCK
22
DESCRIPTION OF CAPITAL STOCK
22
UNDERWRITING
25
LEGAL MATTERS
27
EXPERTS
27
EX-23.1
Table of Contents
CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated by reference
    contain certain forward-looking statements within the meaning of
    Section 27A of the Securities Act of 1933, as amended (the
    "Securities Act"), and Section 21E of the
    Securities Exchange Act of 1934, as amended, (the "Exchange
    Act"), which are intended to be covered by the safe harbors
    created thereby. These forward-looking statements represent
    plans, estimates, objectives, goals, guidelines, expectations,
    intentions, projections and statements of our beliefs concerning
    future events, business plans, objectives, expected operating
    results and the assumptions upon which those statements are
    based. Forward-looking statements include, without limitation,
    any statement that may predict, forecast, indicate or imply
    future results, performance or achievements, and are typically
    identified with words such as "may,"
    "could," "should," "will,"
    "would," "believe," "anticipate,"
    "estimate," "expect," "intend,"
    "plan," or words or phrases of similar meaning. We
    caution that the forward-looking statements are based largely on
    our expectations and are subject to a number of known and
    unknown risks and uncertainties that are subject to change based
    on factors which are, in many instances, beyond our control.
    Actual results, performance or achievements could differ
    materially from those contemplated, expressed, or implied by the
    forward-looking statements.
The following factors, among others, could cause our actual
    results to differ materially from those expressed in such
    forward-looking statements:
•
The strength of the United States economy in general and the
    strength of the local economies in which we conduct operations,
    the duration of current financial and economic volatility and
    decline and actions taken by the United States Congress and
    governmental agencies, including the United States Department of
    the Treasury (the "Treasury"), to deal with challenges
    to the United States financial system;
•
The effects of, and changes in, trade, monetary and fiscal
    policies and laws, including interest rate policies of the Board
    of Governors of the Federal Reserve System, or the Federal
    Reserve Board;
•
Inflation, interest rate, market and monetary fluctuations, the
    risks presented by a continued economic recession, which could
    adversely affect credit quality, collateral values, investment
    values and liquidity;
•
Changes in the financial performance
and/or
condition of our borrowers;
•
Changes in consumer spending, borrowing and savings habits;
•
Changes in the level of our nonperforming assets and charge-offs;
•
Oversupply of inventory and continued deterioration in values of
    real estate in California and the United States generally, both
    residential and commercial;
•
Changes in securities markets, public debt markets and other
    capital markets;
•
Possible
other-than-temporary
impairments of securities held by us;
•
The timely development of competitive new products and services
    and the acceptance of these products and services by new and
    existing customers;
•
The willingness of customers to substitute competitors'
    products and services for our products and services;
•
The impact of changes in financial services policies, laws and
    regulations, including laws, regulations and policies concerning
    taxes, banking, securities and insurance, and the application
    thereof by regulatory bodies;
•
Technological changes could expose us to new risks, including
    potential systems failures or fraud;
•
The timing and effect of acquisitions we may make, if any,
    including, without limitation, the failure to achieve the
    expected revenue growth
and/or
expense savings from such acquisitions;
•
Possible impairment of goodwill that has been recorded in
    connection with acquisitions which may have a material adverse
    impact on our earnings;
•
The effect of changes in accounting policies and practices, as
    may be adopted from
time-to-time
by bank regulatory agencies, the Securities and Exchange
    Commission (the "SEC"), the Public Company
ii
Table of Contents
Accounting Oversight Board, the Financial Accounting Standards
    Board or other accounting standards setters;
•
The impact of current governmental efforts to restructure the
    United States financial regulatory system, including changes in
    the scope and cost of FDIC insurance and other coverages and
    changes in the Treasury's Capital Purchase Program;
•
Ability to attract deposits and other sources of liquidity at
    acceptable costs;
•
Changes in the competitive environment among financial and bank
    holding companies and other financial service providers;
•
The loss of critical personnel and the challenge of hiring
    qualified personnel at reasonable compensation levels;
•
Geopolitical conditions, including acts or threats of war or
    terrorism, actions taken by the United States or other
    governments in response to acts or threats of war or terrorism
and/or
military conflicts, which could impact business and economic
    conditions in the United States and abroad;
•
Unanticipated regulatory or judicial proceedings; and
•
Our ability to manage the risks involved in the foregoing.
If our assumptions regarding one or more of the factors
    affecting our forward-looking information and statements proves
    incorrect, then our actual results, performance or achievements
    could differ materially from those expressed in, or implied by,
    forward-looking information and statements contained in this
    prospectus and in the information incorporated by reference in
    this prospectus. Therefore, we caution you not to place undue
    reliance on our forward-looking information and statements. We
    will not update the forward-looking statements to reflect actual
    results or changes in the factors affecting the forward-looking
    statements.
Forward-looking statements should not be viewed as predictions,
    and should not be the primary basis upon which investors
    evaluate us. Any investor in our common stock should consider
    all risks and uncertainties set forth under "RISK
    FACTORS" and disclosed in our filings with the SEC
    described below under the heading "WHERE YOU CAN FIND MORE
    INFORMATION," all of which is accessible on the SEC's
    website at
www.sec.gov.
ABOUT
    THIS PROSPECTUS
You should rely only on the information contained or
    incorporated by reference in this prospectus. We have not, and
    the underwriters have not, authorized any person to provide you
    with different or inconsistent information. If anyone provides
    you with different or inconsistent information, you should not
    rely on it. We are not, and the underwriters are not, making an
    offer to sell these securities in any jurisdiction where the
    offer or sale is not permitted. You should assume that the
    information appearing in this prospectus and the documents
    incorporated by reference is accurate only as of their
    respective dates. Our business, financial condition, results of
    operations and prospects may have changed since such dates.
In this prospectus, "Bank of Commerce Holdings,"
    "the Company," "we," "our,"
    "ours," and "us" refer to Bank of Commerce
    Holdings, which is a financial holding company headquartered in
    Redding, California, and its subsidiaries on a consolidated
    basis, unless the context otherwise requires. References to the
    "Bank" mean Redding Bank of Commerce, which is a
    California-chartered commercial bank and our wholly-owned
    banking subsidiary.
WHERE YOU
    CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, proxy statements
    and other information with the SEC. You may read and copy any
    document we file at the SEC's Public Reference Room at
    100 F Street, N.E., Washington, D.C. 20549.
    You may obtain information on the operation of the Public
    Reference Room by calling the SEC
at 1-800-SEC-0330.
The SEC also maintains an Internet site that contains reports,
    proxy and information statements, and other information
    regarding issuers that file electronically with the SEC. The
    Internet address of the SEC's website is
www.sec.gov.
Such reports and other information concerning us also can be
    retrieved by accessing
iii
Table of Contents
our website at
www.bankofcommerceholdings.com
or
www.reddingbankofcommerce.com.
Information on our
    websites is not part of this prospectus.
This prospectus, which is a part of a registration statement on
Form S-1
that we have filed with the SEC under the Securities Act, omits
    certain information set forth in the registration statement.
    Accordingly, for further information, you should refer to the
    registration statement and its exhibits on file with the SEC.
    Furthermore, statements contained in this prospectus concerning
    any document filed as an exhibit are not necessarily complete
    and, in each instance, we refer you to the copy of such document
    filed as an exhibit to the registration statement.
The SEC allows us to incorporate by reference information we
    file with it, which means that we can disclose important
    information to you by referring you to other documents. The
    information incorporated by reference is considered to be part
    of this prospectus. We incorporate by reference the documents
    listed below, except to the extent that any information
    contained in such filings are deemed "furnished" in
    accordance with SEC rules:
•
Our Annual Report on
Form 10-K
for the year ended December 31, 2008, filed with the SEC on
    March 13, 2009;
•
Our Definitive Proxy Statement on Schedule 14A filed with
    the SEC on March 24, 2009;
•
Our Quarterly Reports on
Form 10-Q
for the quarter ended March 31, 2009, filed with the SEC on
    May 1, 2009, for the quarter ended June 30, 2009,
    filed with the SEC on August 14, 2009, as amended by
    Amendment No. 1 on Form 10-Q/A filed with the SEC on
    February 9, 2010, and for the quarter ended
    September 30, 2009, filed with the SEC on November 6,
    2009, as amended by Amendment No. 1 on Form 10-Q/A
    filed with the SEC on February 9, 2010; and
•
Our Current Reports on
Form 8-K
filed with the SEC on November 5, 2009, December 16,
    2009, January 29, 2010, and February 9, 2010.
•
Upon request, we will provide to each person, including any
    beneficial owner to whom a prospectus is delivered, a copy of
    any or all of the reports or documents that have been
    incorporated by reference in the prospectus contained in the
    registration statement, but not delivered with the prospectus.
    You may request a copy of these filings (other than an exhibit
    to a filing unless that exhibit is specifically incorporated by
    reference into that filing) at no cost, by writing to or
    telephoning us at the following address and telephone number:
Bank of
    Commerce Holdings
1951 Churn Creek Road
Redding, California 96002
Attention: Samuel D. Jimenez, Chief Financial Officer
Telephone:
(530) 722-3952
iv
Table of Contents
PROSPECTUS
    SUMMARY
This summary highlights some information contained elsewhere
    or incorporated by reference in this prospectus and it may not
    contain all of the information that is important to you in
    making an investment decision. To understand the terms of the
    common stock offered by this prospectus, you should read this
    prospectus as well as the information to which we refer you and
    the information incorporated by reference in this prospectus.
    You should carefully read the section titled "RISK
    FACTORS" in this prospectus to determine whether an
    investment in our common stock is appropriate for you.
About
    Bank of Commerce Holdings
Bank of Commerce Holdings is a corporation organized under the
    laws of California and a financial holding company registered
    under the Bank Holding Company Act of 1956, as amended. Our
    principal business is to serve as a holding company for Redding
    Bank of Commerce, which operates under two separate names
    (Redding Bank of
    Commerce
tm
and Roseville Bank of
    Commerce
tm
)

    and for Bank of Commerce
    Mortgage
tm
,

    our majority-owned mortgage brokerage subsidiary. We also have
    two unconsolidated subsidiaries, Bank of Commerce Holdings Trust
    and Bank of Commerce Holdings Trust II, which were
    organized in connection with our prior issuances of trust
    preferred securities. Our common stock is traded on the NASDAQ
    Global Market under the symbol "BOCH."
The Bank commenced banking operations in 1982 and currently
    operates four full service facilities in two diverse markets in
    Northern California. We are proud of the Bank's reputation
    as one of Northern California's premier banks for business.
    During 2007, we re-branded the Bank as "Bank of
    Commerce
ï
Bank of
    Choice
tm
"

    reflecting a renewed commitment to making the Bank the choice
    for local businesses with a fresh focus on family and personal
    finances. We provide a wide range of financial services and
    products for business and consumer banking. The services offered
    by the Bank include those traditionally offered by banks of
    similar size in California, such as free checking,
    interest-bearing checking and savings accounts, money market
    deposit accounts, sweep arrangements, commercial, construction
    and term loans, travelers checks, safe deposit boxes, collection
    services and electronic banking activities. The Bank is an
    affiliate of LPL Financial and offers wealth management services
    through that affiliation.
In order to enhance our noninterest income, in May 2009 we
    acquired 51.0% of the capital stock of Simonich Corporation, a
    successful state of the art mortgage broker of residential real
    estate loans headquartered in San Ramon, California, with
    ten offices in three different states and licenses in
    California, Oregon, Washington, Idaho and Colorado. The business
    was formed in 1993 and funds over $1.0 billion of first
    mortgages annually. The acquisition allows us to penetrate into
    the mortgage brokerage services market at our current Bank
    locations and to share in the income on mortgage transactions
    nationwide. On July 1, 2009 we changed the mortgage
    company's name to Bank of Commerce
    Mortgage
tm
in order to enhance our name recognition throughout Northern
    California. The services offered by Bank of Commerce
    Mortgage
tm
include brokerage mortgages for single and multi-family
    residential new financing, refinancing and equity lines of
    credit which are then sold, servicing included, on the secondary
    market or to correspondent relationships.
Our principal executive offices are located at 1951 Churn Creek
    Road, Redding, California and the telephone number is
(530) 722-3939.
2009
    Results and Balance Sheet Composition
Due to conservative loan underwriting, active servicing of
    problem credits and maintenance of a healthy net interest
    margin, we have remained profitable during the recent economic
    downturn and positioned the company to take advantage of growth
    opportunities in the coming years. During 2009 we recorded net
    income of $6.0 million, and net income to common
    shareholders of $5.1 million, or $0.58 per diluted share,
    after deducting preferred dividend payments made to the Treasury
    and accretion of preferred shares under the TARP Capital
    Purchase Program. This was an increase from $2.2 million of
    net income, or $0.25 per share, reported in 2008. As of
    December 31, 2009, we had total assets of
    $813.4 million, total loans of $601.4 million, an
    allowance for loan and lease losses of $11.2 million, or
    1.86% of total loans, deposits outstanding of
    $640.5 million and shareholders' equity of
    $68.8 million.
1
Table of Contents
During the past two years, we have restructured our loan
    portfolio, in order to reduce our concentration in commercial
    real estate loans, especially construction and land development
    loans, and maintained our strengths in commercial and financial
    loans. In addition, in April 2009, we entered into a loan sale
    and purchase agreement with a third party whereby we purchased
    an $80.6 million pool of first mortgage loans made to legal
    United States residents who do not have a social security number
    ("ITIN loans"). These were seasoned, performing loans
    carrying an average balance of $86,000 and a yield of 7.44%. As
    of December 31, 2009 and 2008, our loan portfolio consisted
    of the following types of loans:
December 31, 2009
December 31, 2008
Percentage of
Percentage of
Loan Type
Dollar Amount
Total Loans
Dollar Amount
Total Loans
(In thousands)
(In thousands)
Commercial and financial loans
$
133,078
22.13
%
$
164,083
31.11
%
Real estate — construction loans
59,524
9.90
%
84,218
15.97
%
Real estate — commercial (investor)
197,023
32.76
%
147,868
28.03
%
Real estate — commercial (owner occupied)
63,001
10.48
%
70,046
13.28
%
Real estate — ITIN loans
78,250
13.01
%
—
0.00
%
Real estate — mortgage
20,526
3.41
%
20,285
3.85
%
Real estate — other
45,601
7.58
%
39,915
7.57
%
Installment
2,223
0.37
%
145
0.02
%
Other loans
2,213
0.36
%
903
0.17
%
Total loans
$
601,439
100.00
%
$
527,463
100.00
%
During 2009, we increased our emphasis on gathering core
    deposits within our markets through the opening of our
    Buenaventura branch in Redding, the promotion of a new savings
    product and the adoption of an incentive compensation plan for
    our employees for obtaining non-CD deposit accounts. As an
    operating tool to manage the Bank's net interest income,
    although not customary in the industry, our management
    calculates 'core deposits' without regard to any
    certificates of deposit, regardless of point of origination,
    size or maturity. As of December 31, 2009 and 2008 our
    deposits consisted of the following:
December 31, 2009
December 31, 2008
Percentage of
Percentage of
Deposit Type
Dollar Amount
Total Deposits
Dollar Amount
Total Deposits
(In thousands)
(In thousands)
Demand — noninterest bearing
$
69,448
10.84
%
$
79,988
14.40
%
Demand — interest bearing
163,813
25.58
%
143,871
25.91
%
Savings
65,414
10.21
%
67,136
12.09
%
Certificates of Deposit
341,789
53.37
%
264,287
47.60
%
Total deposits
$
640,464
100.00
%
$
555,282
100.00
%
Our base of core deposits has been a driver of our net interest
    margin and profitability throughout our recent history. Among
    our deposits, our brokered deposits totaled $86.7 million
    at December 31, 2009. Included in the brokered deposit
    figure is our internet-based deposit gathering program. The
    program has been extremely successful in both the level of
    deposits and pricing. We have subscribed to National CD Rate
    line and Community Bank Funding Company's electronic
    transaction network ("eTN") for approximately
    15 months. The deposits gathered under the National CD Rate
    line program are not considered "brokered." We pay an
    annual subscription fee to post our rates to the company's
    website. Institutional investors such as credit unions, banks,
    insurance companies, and other financial institutions review our
    rates and contact us directly to confirm our rates and submit
    the proper documentation to establish a time deposit. As of
    December 31, 2009, we had approximately $50.0 million
    in National CD Rate line time deposits; with rates between 50 to
    100 basis points below our local markets. The individual
    time deposits generally range from $99,000 to $250,000.
The eTN subscription program through Community Bank Funding
    Company ("CBFC") is somewhat different than National
    CD Rate line program. As with National CD Rate line,
    institutional investors subscribe to CBFC
2
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program to view our rates and the posted rates of other banks.
    However, CBFC does not charge a subscription fee to post or view
    the interest rates but instead charges a fee of 6 to
    20 basis points from each investor's time deposit as
    the cost of doing business. Accordingly, we report these
    deposits as "brokered". As of December 31, 2009,
    we had approximately $12.0 million in CBFC time deposits;
    with rates between 50 to 100 basis points below our local
    markets. The individual time deposits generally range from
    $99,000 to $250,000.
Our net interest margin increased to 3.94% in 2009 from 3.47% in
    2008, due in part to the reduction of our cost of funds to 1.87%
    resulting from our core deposit strategy, CD programs and the
    favorable re-pricing of certain borrowings.
Business
    Strategy
We continuously search for both organic and external expansion
    opportunities, through internal growth, strategic alliances,
    acquisitions, establishing a new office or the delivery of new
    products and services. Systematically, we will reevaluate the
    short and long-term profitability of all of our lines of
    business, and will not hesitate to reduce or eliminate
    unprofitable locations or lines of business. We remain a viable,
    independent bank committed to enhancing shareholder value. This
    commitment has been fostered by proactive management and
    dedication to our staff, customers, and the markets we serve.
Our vision is to embrace changes in the industry and develop
    profitable business strategies that allow us to maintain our
    customer relationships and build new ones. Our competitors are
    no longer just banks; we must compete with a myriad of other
    financial entities that compete for our core business. The
    flexibility provided by our status as a financial holding
    company has become increasingly important. We have developed
    strategic plans that evaluate additional financial services and
    products that can be delivered to our customers efficiently and
    profitably. Producing quality returns is, as always, a top
    priority.
Our governance structure enables us to manage all major aspects
    of our business effectively through an integrated process that
    includes financial, strategic, risk and leadership planning. Our
    management processes, structures and policies and procedures
    help to ensure compliance with laws and regulations and provide
    clear lines for decision-making and accountability. Results are
    important, but we are equally concerned with how we achieve
    those results. Our core values and commitment to high ethical
    standards is material to sustaining public trust and confidence
    in our Company.
Our primary business strategy is to provide comprehensive
    banking and related services to small and mid-sized businesses,
not-for-profit
organizations, and professional service providers as well as
    banking services for consumers, primarily business owners and
    their key employees. We emphasize the diversity of our product
    lines and high levels of personal service and, through our
    technology, offer convenient access typically associated with
    larger financial institutions, while maintaining the local
    decision-making authority and market knowledge, typical of a
    local community bank. Management intends to pursue our business
    strategy through the following initiatives:
•
Utilize the Strength of Our Management
    Team.
The experience, depth and knowledge of our
    management team represent one of our greatest strengths and
    competitive advantages. Our Senior Leadership Committee
    establishes short and long-term strategies, operating plans and
    performance measures and reviews our performance to plan on a
    monthly basis. Our Credit Round Table Committee recommends
    corporate credit practices and limits, including industry
    concentration limits and approval requirements and exceptions.
    Our Technology Steering Committee establishes technological
    strategies, makes technology investment decisions, and manages
    the implementation process. Our ALCO Round Table Committee
    establishes and monitors liquidity ranges, pricing, maturities,
    investment goals, and interest spread on balance sheet accounts.
    Our SOX 404 Compliance Team has established the master plan for
    full documentation of the Company's internal controls and
    compliance with Section 404 of the Sarbanes-Oxley Act of
    2002.
•
Leverage Our Existing Foundation for Additional
    Growth
.  Based on our management's depth of
    experience and certain infrastructure investments, we believe
    that we will be able to take advantage of certain economies of
    scale typically enjoyed by larger organizations to expand our
    operations both organically and through strategic cost-effective
    avenues. We believe that there will be significant opportunities
    to acquire failing institutions or their assets through loss
    sharing agreements with the FDIC, buy branches from
3
Table of Contents
struggling banks in our market areas looking to raise capital,
    and acquire entire franchises for little to no premium. We also
    believe that the investments we have made in our data
    processing, staff and branch network will be able to support a
    much larger asset base. We are committed, however, to control
    any additional growth in a manner designed to minimize risk and
    to maintain strong capital ratios. We believe that the net
    proceeds raised in this offering will assist us in implementing
    our growth strategies by providing the capital necessary to
    support future asset growth, both organically and through
    strategic acquisitions.
•
Maintain Local Decision-Making and
    Accountability.
We believe we have a competitive
    advantage over larger national and regional financial
    institutions by providing superior customer service with
    experienced, knowledgeable management, localized decision-making
    capabilities and prompt credit decisions. We believe that our
    customers want to deal directly with the people who make the
    ultimate credit decisions and have provided our Bank managers
    and loan officers with the authority commensurate with their
    experience and history which we believe strikes the right
    balance between local decision-making and sound banking practice.
•
Focus on Asset Quality and Strong
    Underwriting.
We consider asset quality to be of
    primary importance and have taken measures to ensure that,
    despite the turbulent economy and growth in our loan portfolio,
    we consistently maintain strong asset quality. As part of our
    efforts, we utilize a third party loan review service to
    evaluate our loan portfolio on a quarterly basis and recommend
    action on certain loans if deemed appropriate. As of
    December 31, 2009, we had $13.4 million in
    nonperforming assets, including other real estate owned of
    $2.9 million, which as a percentage of total assets was
    1.65%. We also seek to maintain a prudent allowance for loan
    losses, which at December 31, 2009 was $11.2 million,
    representing 1.86% of our loan portfolio.
•
Build a Stable Core Deposit Base.
We will
    continue to grow a stable core deposit base of business and
    retail customers. In the event that our asset growth outpaces
    these local core deposit funding sources, we will continue to
    utilize Federal Home Loan Bank borrowings and raise deposits in
    the national market using deposit intermediaries. We intend to
    continue our practice of developing a full deposit relationship
    with each of our loan customers, their business partners, and
    key employees. We will continue to use "hot spot"
    consumer depositories with state of the art technologies in
    highly convenient locations to enhance our core deposit base.
Risk
    Factors
An investment in our common stock involves certain risks. You
    should consider carefully the risks described under "RISK
    FACTORS" beginning on page 8 of this prospectus, as
    well as other information included in or incorporated by
    reference into this prospectus, including our consolidated
    financial statements and notes thereto, before making an
    investment decision.
4
Table of Contents
The
    Offering
The following summary of the offering contains basic information
    about this offering and our common stock and is not intended to
    be a complete discussion of the offering or the common stock.
    For a more complete understanding of the common stock, please
    refer to the section of this prospectus entitled
    "DESCRIPTION OF CAPITAL STOCK."
Issuer
Bank of Commerce Holdings, a California corporation.
Common stock we are offering
shares
    of common stock, no par value.
Common stock outstanding after this offering
shares
    of common stock. (1)(2)
Over-allotment option
We have granted the underwriters an option to purchase up to an
    additional           shares
    of common stock within 30 days of the date of this
    prospectus in order to cover over-allotments, if any.
Use of proceeds
We intend to use the net proceeds from this offering to enhance
    our ability to support internal organic growth, to maintain
    prudent and required regulatory capital levels, and for general
    corporate purposes which may include pursuing acquisitions of
    deposits, loans, whole banks or branches through both negotiated
    and FDIC-assisted transactions, and to position us for the
    eventual redemption of our Series A Preferred Stock issued
    to the Treasury under the TARP Capital Purchase Program.
Market and trading symbol for our common stock
Our common stock is listed and traded on the NASDAQ Global
    Market under the symbol "BOCH."
(1)
The number of shares of common stock outstanding immediately
    after the closing of this offering is based on
    8,711,495 shares of common stock outstanding as of
    December 31, 2009.
(2)
Unless otherwise indicated, the number of shares of common stock
    presented in this prospectus excludes shares issuable pursuant
    to the exercise of the underwriters' over-allotment option,
    282,080 shares of common stock issuable pursuant to
    outstanding options under our stock option plan and
    405,405 shares of common stock issuable pursuant to
    outstanding warrants issued to the Treasury as part of the TARP
    Capital Purchase Program.
5
Table of Contents
SUMMARY
    SELECTED CONSOLIDATED FINANCIAL INFORMATION
The following table sets forth summary historical consolidated
    financial information at or for the years ended
    December 31, 2008, 2007, 2006, and 2005 (which has been
    derived from our audited consolidated financial statements), and
    at or for the year ended December 31, 2009 (which is
    unaudited). The unaudited financial information as of and for
    the year ended December 31, 2009 has been prepared on the
    same basis as our audited financial statements and includes, in
    our opinion, all adjustments necessary to fairly present the
    data for such periods. Historical results are not necessarily
    indicative of future results. You should read the following
    summary selected consolidated financial information in
    conjunction with our consolidated financial statements and
    related notes and "Management's Discussion and
    Analysis of Financial Condition and Results of Operations"
    included in our Annual Report on
Form 10-K
for the year ended December 31, 2008 (the
    "2008 Form 10-K") and our Quarterly Report on
Form 10-Q
for the quarter ended September 30, 2009, and our earnings
    release dated January 29, 2010 which have been filed and
    furnished, respectively, with the SEC and are incorporated in
    this prospectus by reference.
At or for the Years Ended December 31,
2009
2008
2007
2006
2005
(Unaudited)
In thousands (except ratios and per share data)
Statements of Income:
Total Interest Income
$
41,329
$
37,690
$
41,128
$
37,610
$
27,864
Net Interest Income
28,994
21,348
22,012
22,035
20,238
Provision for Loan Losses
9,475
6,520
3,291
226
448
Total Noninterest Income
10,063
2,623
4,535
1,928
2,124
Total Noninterest Expense
20,624
15,296
15,744
13,333
11,749
Total Revenues
51,392
40,313
45,663
39,538
29,988
Net Income
$
6,005
$
2,194
$
6,107
$
6,568
$
6,278
Balance Sheets:
Total Assets
$
813,406
$
774,214
$
618,327
$
583,442
$
511,644
Total Loans
601,439
527,463
486,283
408,989
363,305
Allowance for Loan Losses
11,207
8,429
8,233
4,904
4,316
Total Deposits
640,464
555,282
473,631
439,407
372,116
Shareholders' Equity
68,807
62,578
46,164
43,916
39,138
Performance Ratios:(1)
Return on Average Assets(2)
0.75
%
0.33
%
1.04
%
1.20
%
1.34
%
Return on Average Shareholders' Equity(3)
9.01
4.99
13.39
15.59
18.35
Dividend Payout
34.81
127.04
46.47
40.36
35.74
Average Equity to Average Assets
8.28
8.91
9.43
9.49
9.43
Tier 1 Risk-Based Capital-Bank(4)
11.57
11.58
9.97
11.42
12.08
Total Risk-Based Capital-Bank
12.83
12.84
11.22
12.54
13.11
Net Interest Margin(5)
3.94
3.47
3.98
4.26
4.59
Average Earning Assets to Total Average Assets
91.42
92.86
93.74
94.20
94.04
Nonperforming Assets to Total Assets(6)
1.65
2.98
2.01
0.00
0.08
Net Charge-offs to Average Loans
1.14
1.22
.00
(.09
)
0.00
Allowance for Loan Losses to Total Loans
1.86
1.60
1.66
1.18
1.17
Nonperforming Loans to Allowance for Loan Losses
94.16
239.10
150.72
0.00
9.15
Efficiency Ratio(7)
52.80
63.81
59.31
55.64
52.54
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Table of Contents
At or for the Years Ended December 31,
2009
2008
2007
2006
2005
(Unaudited)
In thousands (except ratios and per share data)
Share Data:
Average Common Shares Outstanding — basic
8,711
8,713
8,858
8,760
8,600
Average Common Shares Outstanding — diluted
8,711
8,724
8,938
8,932
8,845
Book Value Per Common Share
$
5.72
$
5.23
$
5.27
$
4.96
$
4.52
Basic Earnings Per Common Share
$
0.58
$
0.25
$
0.69
$
0.75
$
0.73
Diluted Earnings Per Common Share
$
0.58
$
0.25
$
0.68
$
0.74
$
0.71
Cash Dividends Per Common Share(8)
$
0.24
$
0.32
$
0.33
$
0.29
$
0.26
(1)
Regulatory capital ratios and asset quality ratios are end of
    period ratios.
(2)
With the exception of end of period ratios, all ratios are based
    on average daily balances during the indicated period.
(3)
Return on average equity is net income divided by average
    shareholders' equity.
(4)
Regulatory capital ratios are defined in detail in a table on
    page 13 of our
2008 Form 10-K.
(5)
Net interest margin equals net interest income as a percent of
    average interest-earning assets.
(6)
Nonperforming assets includes all nonperforming loans
    (nonaccrual loans, loans 90 days past due and still
    accruing interest and restructured loans) and real estate
    acquired by foreclosure.
(7)
The efficiency ratio is calculated by dividing noninterest
    expense by the sum of net interest income and noninterest
    income. The efficiency ratio measures how much we spend in order
    to generate each dollar of net revenue.
(8)
Excludes preferred shares under the Treasury's Capital
    Purchase Program as well as the minority interest in our
    consolidated subsidiary related to Bank of Commerce Mortgage.
7
Table of Contents
RISK
    FACTORS
An investment in our common stock involves certain risks. You
    should carefully consider the risks described below, as well as
    the other information included or incorporated by reference in
    this prospectus, before making an investment decision.
    Additional risks and uncertainties not presently known to us or
    that we currently deem immaterial may also impair our business
    operations. If any of these risks actually occurs, our business,
    financial condition or results of operations could be materially
    adversely affected. In that case, the trading price of our
    common stock could decline substantially, and you may lose all
    or part of your investment. Additional risks and uncertainties
    not presently known to us at this time or that we currently deem
    immaterial may also materially and adversely affect our business
    and operations. The risks discussed below include
    forward-looking statements, and our actual results may differ
    substantially from those discussed in these forward-looking
    statements.
Risks
    Related to Our Business
Our
    business is subject to various economic risks that could
    adversely impact our results of operations and financial
    condition.
There was significant disruption and volatility in the financial
    and capital markets during 2008 and 2009. The financial markets
    and the financial services industry in particular suffered
    unprecedented disruption, causing a number of institutions to
    fail or require government intervention to avoid failure. These
    conditions were largely the result of the erosion of the United
    States and international credit markets, including a significant
    and rapid deterioration in the mortgage lending and related real
    estate markets and valuation levels. Unemployment nationwide and
    in California has increased significantly through this economic
    downturn and is anticipated to increase or remain elevated for
    the foreseeable future. Continued declines in real estate
    values, high unemployment and financial stress on borrowers as a
    result of the uncertain economic environment could have an
    adverse effect on our borrowers or their customers, which could
    adversely affect our financial condition and results of
    operations.
We conduct banking operations principally in Northern
    California. As a result, our business results are dependent in
    large part upon the business activity, population, income
    levels, deposits and real estate activity in Northern
    California. There can be no assurance that the economic
    conditions that have adversely affected the financial services
    industry, and the capital, credit and real estate markets
    generally, will improve in the near term, in which case we could
    continue to experience losses and write-downs of assets, and
    could face capital and liquidity constraints or other business
    challenges. In addition, the State of California is currently
    experiencing significant budgetary and fiscal difficulties,
    which include terminating and furloughing state employees. The
    businesses operating in California and Sacramento in particular
    depend on these state employees for business, and reduced
    spending activity by these state employees could have a material
    impact on the success or failure of these businesses, some of
    which are current or potential future customers of the Bank. A
    further deterioration in economic conditions, particularly
    within our geographic region, could result in the following
    consequences, any of which could have a material adverse effect
    on our business, prospects, financial condition and results of
    operations:
•
Loan delinquencies may further increase causing additional
    increases in our provision and allowance for loan losses;
•
Financial sector regulators may adopt more restrictive practices
    or interpretations of existing regulations, or adopt new
    regulations;
•
Collateral for loans made by the Bank, especially real estate
    related, may continue to decline in value, which in turn could
    reduce a client's borrowing power, and reduce the value of
    assets and collateral associated with our loans held for
    investment;
•
Consumer confidence levels may decline and cause adverse changes
    in payment patterns, resulting in increased delinquencies and
    default rates on loans and other credit facilities and decreased
    demand for our products and services; and
•
Performance of the underlying loans in the private label
    mortgage backed securities we hold may continue to deteriorate
    as the recession continues, potentially causing
other-than-temporary
impairment markdowns to our investment portfolio.
8
Table of Contents
Nonperforming
    assets take significant time to resolve and adversely affect our
    results of operations and financial condition.
As of December 31, 2009, our total nonperforming assets
    amounted to $13.4 million, including $2.9 million in
    other real estate owned, or 1.65% of our total assets, down from
    $23.1 million, or 2.98% of total assets a year earlier. We
    experienced $6.7 million in net charge-offs in 2009
    compared to $6.3 million in 2008. Our provision for loan
    and lease losses was $9.5 million for the twelve months
    ended December 31, 2009 compared to $6.5 million for
    the twelve months ended December 31, 2008. Nonperforming
    assets adversely affect our net income in various ways. Until
    economic and market conditions improve, we may expect to
    continue to incur losses relating to an increase in
    nonperforming assets. We generally do not record interest income
    on nonperforming loans or other real estate owned, thereby
    adversely affecting our income, and increasing our loan
    administration costs. When we take collateral in foreclosures
    and similar proceedings, we are required to mark the related
    asset to the then fair market value of the collateral, which may
    ultimately result in a loss. An increase in the level of
    nonperforming assets increases our risk profile and may impact
    the capital levels our regulators believe are appropriate in
    light of the ensuing risk profile. While we reduce problem
    assets through loan sales, workouts, restructurings and
    otherwise, decreases in the value of the underlying collateral,
    or in these borrowers' performance or financial condition,
    whether or not due to economic and market conditions beyond our
    control, could adversely affect our business, results of
    operations and financial condition. In addition, the resolution
    of nonperforming assets requires significant commitments of time
    from management and our directors, which can be detrimental to
    the performance of their other responsibilities. There can be no
    assurance that we will not experience future increases in
    nonperforming assets.
We
    have a concentration risk in real estate related
    loans.
As of December 31, 2009, approximately 77.13% of our loan
    portfolio was secured by real estate, the majority of which is
    commercial real estate. Of that amount, 9.90% of our total loan
    portfolio consisted of construction loans, 43.23% related to
    commercial real estate, 16.42% related to residential mortgage
    loans (including our ITIN loans) and 7.58% involved real estate
    related loans not classified in the preceding definitions. As a
    result of increased levels of commercial and consumer
    delinquencies and declining real estate values, we have
    experienced increasing levels of net charge-offs. A large
    percentage of our loan portfolio is secured by commercial real
    estate loans which generally carry larger loan balances and
    historically have involved a greater degree of financial and
    credit risks than residential first mortgage loans. These loans
    are primarily made based on the cash flow of the borrower and
    secondarily on the underlying collateral provided by the
    borrower, and therefore repayment of these loans is often
    dependent on the cash flow of the borrower which may be
    unpredictable. Continued increases in commercial and consumer
    delinquency levels or continued declines in real estate market
    values would require increased net charge-offs and increases in
    the allowance for loan and lease losses, which could have a
    material adverse effect on our business, financial condition,
    results of operations and prospects.
Monitoring
    and servicing our Individual Tax Identification Number
    ("ITIN") residential mortgage loans could prove more
    costly and time consuming than previously modeled.
In April 2009, we completed a loan "swap" transaction,
    whereby we exchanged, without recourse, $14.0 million in
    certain nonperforming assets measured at fair value and cash of
    approximately $67.0 million for a pool of performing ITIN
    loans with an estimated fair value of $80.7 million. These
    loans are residential mortgage loans made to legal United States
    residents without a social security number and are
    geographically dispersed throughout the United States. This is
    our first ITIN loan transaction, and as such, is serviced
    through a third party. Worsening economic conditions in the
    United States may cause us to suffer higher default rates on our
    ITIN loans and reduce the value of the assets that we hold as
    collateral. In addition, if we are forced to foreclose and
    service these ITIN properties ourselves, we may realize
    additional monitoring, servicing and appraisal costs due to the
    geographic dispersement of the portfolio which would adversely
    affect our noninterest expense.
Future
    loan losses may exceed the allowance for loan
    losses.
We have established a reserve for possible losses expected in
    connection with loans in the credit portfolio. This allowance
    reflects estimates of the collectability of certain identified
    loans, as well as an overall risk assessment of
9
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total loans outstanding. The determination of the amount of loan
    loss allowance is subjective; although the method for
    determining the amount of the allowance uses criteria such as
    risk ratings and historical loss rates, these factors may not be
    adequate predictors of future loan performance, particularly in
    the current economic climate. Accordingly, we cannot offer
    assurances that these estimates ultimately will prove correct or
    that the loan loss allowance will be sufficient to protect
    against losses that ultimately may occur. If the loan loss
    allowance proves to be inadequate, we will need to make
    additional provisions to the allowance, which is accounted for
    as charges to income, which would adversely impact results of
    operations and financial condition. Moreover, bank regulators
    frequently monitor banks' loan loss allowances, and if
    regulators were to determine that the allowance was inadequate,
    they may require us to increase the allowance, which also would
    adversely impact results of operations and financial condition.
Defaults
    may negatively impact us.
A source of risk arises from the possibility that losses will be
    sustained if a significant number of borrowers, guarantors and
    related parties fail to perform in accordance with the terms of
    their loans. We have adopted underwriting and credit monitoring
    procedures and credit policies, including the establishment and
    review of the allowance for loan losses, which management
    believes are appropriate to minimize risk by assessing the
    likelihood of nonperformance, tracking loan performance and
    diversifying the loan portfolio. These policies and procedures,
    however, may not prevent unexpected losses that could materially
    affect our results of operations.
Interest
    rate fluctuations, which are out of our control, could harm
    profitability.
Our income is highly dependent on "interest rate
    differentials" and the resulting net interest margins
    (i.e., the difference between the interest rates earned on the
    Bank's interest-earning assets such as loans and
    securities, and the interest rates paid on the Bank's
    interest-bearing liabilities such as deposits and borrowings).
    These rates are highly sensitive to many factors, which are
    beyond our control, including general economic conditions,
    inflation, recession and the policies of various governmental
    and regulatory agencies, in particular, the Federal Reserve
    Board. Because of our preference for using variable rate pricing
    on the majority of our loan portfolio and non-interest bearing
    demand deposit accounts we are asset sensitive. As a result, we
    are generally adversely affected by declining interest rates. In
    addition, changes in monetary policy, including changes in
    interest rates, influence the origination of loans, the purchase
    of investments and the generation of deposits. These changes
    also affect the rates received on loans and securities and paid
    on deposits, which could have a material adverse effect on our
    business, financial condition and results of operations.
Changes
    in the fair value of our securities may reduce our
    shareholders' equity and net income.
At December 31, 2009, $80.1 million of our securities
    were classified as
available-for-sale.
At such date, the aggregate unrealized gain on our
available-for-sale
securities, net of tax, was $658,000. We increase or decrease
    shareholders' equity by the amount of change from the
    unrealized gain or loss (the difference between the estimated
    fair value and the amortized cost) of our
available-for-sale
securities portfolio, net of the related tax, under the category
    of accumulated other comprehensive income/loss. Therefore, a
    decline in the estimated fair value of this portfolio will
    result in a decline in reported shareholders' equity, as
    well as book value per common share and tangible book value per
    common share. This decrease will occur even though the
    securities are not sold. In the case of debt securities, if
    these securities are never sold and there are no credit
    impairments, the decrease will be recovered over the life of the
    securities.
Our available for sale equity holdings consist of shares of the
    Federal Home Loan Bank of San Francisco ("FHLB").
    As of December 31, 2009, we held stock in the FHLB totaling
    $6.1 million. The stock is carried at cost and is subject
    to recoverability testing under applicable accounting standards.
    As of December 31, 2009, we did not recognize an impairment
    charge related to our FHLB stock holdings; however, future
    negative changes to the financial condition of the FHLB may
    require us to recognize an impairment charge with respect to
    such stock holdings.
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Conditions
    in the financial markets may limit our access to additional
    funding to meet our liquidity needs.
Liquidity is essential to our business, as we must maintain
    sufficient funds to respond to the needs of depositors and
    borrowers. An inability to raise funds through deposits,
    repurchase agreements, federal funds purchased, FHLB advances,
    the sale or pledging as collateral of loans and other assets
    could have a substantial negative effect on our liquidity. Our
    access to funding sources in amounts adequate to finance our
    activities could be impaired by factors that affect us
    specifically or the financial services industry in general.
    Factors that could negatively affect our access to liquidity
    sources include negative operating results, a decrease in the
    level of our business activity due to a market downturn or
    negative regulatory action against us. Our ability to borrow
    could also be impaired by factors that are not specific to us,
    such as severe disruption of the financial markets or negative
    news and expectations about the prospects for the financial
    services industry as a whole, as evidenced by turmoil in the
    domestic and worldwide credit markets in recent years.
The
    condition of other financial institutions could negatively
    affect us.
Financial services institutions are interrelated as a result of
    trading, clearing, counterparty, public perceptions and other
    relationships. We have exposure to many different industries and
    counterparties, and we routinely execute transactions with
    counterparties in the financial services industry, including
    commercial banks, brokers and dealers, investment banks and
    other institutional clients. Many of these transactions expose
    us to credit risk in the event of a default by a counterparty or
    client. In addition, our credit risk may be exacerbated when the
    collateral held by us cannot be realized upon or is liquidated
    at prices not sufficient to recover the full amount of the
    credit or derivative exposure due to us. Any such losses could
    have a material adverse effect on our financial condition and
    results of operations.
Changes
    in laws, government regulation and monetary policy may have a
    material effect on our results of operations.
Financial institutions have been the subject of substantial
    legislative and regulatory changes and may be the subject of
    further legislation or regulation in the future, none of which
    is within our control. Significant new laws or regulations or
    changes in, or repeals of, existing laws or regulations may
    cause our results of operations to differ materially. In
    addition, the cost and burden of compliance with applicable laws
    and regulations have significantly increased and could adversely
    affect our ability to operate profitably. Further, federal
    monetary policy significantly affects credit conditions for us,
    as well as for our borrowers, particularly as implemented by the
    Federal Reserve Board, primarily through open market operations
    in United States government securities, the discount rate for
    bank borrowings and reserve requirements. A material change in
    any of these conditions could have a material impact on us or
    our borrowers, and therefore on our results of operations.
On October 3, 2008, the Emergency Economic Stabilization
    Act of 2008 ("EESA") was signed into law. Pursuant to
    the EESA, the Treasury was granted the authority to take a range
    of actions for the purpose of stabilizing and providing
    liquidity to the United States financial markets and has
    proposed several programs, including the purchase by the
    Treasury of certain troubled assets from financial institutions
    and the direct purchase by the Treasury of equity of financial
    institutions. There can be no assurance, however, as to the
    actual impact that the foregoing or any other governmental
    program will have on the financial markets. The failure of the
    financial markets to stabilize and a continuation or worsening
    of current financial market conditions could materially and
    adversely affect our business, financial condition, results of
    operations, access to credit or the trading price of our common
    stock. In addition, current initiatives of President
    Obama's Administration and the possible enactment of
    recently proposed bankruptcy legislation may adversely affect
    our financial condition and results of operations. There can be
    no assurance, however, as to the actual impact that the
    foregoing or any other governmental program will have on the
    financial markets.
The failure of the financial markets to stabilize and a
    continuation or worsening of current financial market conditions
    could materially and adversely affect our business, financial
    condition, results of operations, access to credit and the
    trading price of our common stock.
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We expect to face increased regulation and supervision of our
    industry as a result of the existing financial crisis, and there
    will be additional requirements and conditions imposed on us to
    the extent that we participate in any of the programs
    established or to be established by the Treasury or by the
    federal bank regulatory agencies. Such additional regulation and
    supervision may increase our costs and limit our ability to
    pursue business opportunities. The effects of such recently
    enacted, and proposed, legislation and regulatory programs on us
    cannot reliably be determined at this time.
Because
    of our participation in the Troubled Asset Relief Program we are
    subject to several restrictions including, without limitation,
    restrictions on our ability to declare or pay dividends and
    repurchase our shares as well as restrictions on compensation
    paid to our executives.
On November 14, 2008, in exchange for an aggregate purchase
    price of $17.0 million, we issued and sold to the Treasury
    pursuant to the Trouble Asset Relief Program ("TARP")
    Capital Purchase Program the following:
    (i) 17,000 shares of our newly designated Fixed Rate
    Cumulative Perpetual Preferred Stock, Series A, no par
    value per share and liquidation preference $1,000 per share (the
    "Series A Preferred Stock") and (ii) a
    warrant to purchase up to 405,405 shares of our common
    stock, no par value per share, at an exercise price of $6.29 per
    share, subject to certain anti-dilution and other adjustments.
    The warrant may be exercised for up to ten years after issuance.
In connection with the issuance and sale of our securities, we
    entered into a Letter Agreement including the Securities
    Purchase Agreement — Standard Terms, dated
    November 14, 2008, with the Treasury (the
    "Agreement"). The Agreement contains limitations on
    the payment of quarterly cash dividends on our common stock in
    excess of $0.08 per share, and on our ability to repurchase our
    common stock.
Our
    Series A Preferred Stock diminishes the net income
    available to our common shareholders and earnings per common
    share.
The dividends accrued on the Series A Preferred Stock
    reduce the net income available to common shareholders and our
    earnings per common share. In 2009 our net income of
    $6.0 million was reduced to $5.1 million after
    deducting $942,000 in dividends to the Treasury plus accretion
    on the Series A Preferred Stock. The Series A
    Preferred Stock is cumulative, which means that any dividends
    not declared or paid will accumulate and will be payable when
    the payment of dividends is resumed. The dividend rate on the
    Series A Preferred Stock will increase from 5% to 9% per
    annum five years after its original issuance if not earlier
    redeemed. If we are unable to redeem the Preferred Stock prior
    to the date of this increase, the cost of capital to us will
    increase substantially. Depending on our financial condition at
    the time, this increase in the Series A Preferred Stock
    annual dividend rate could have a material adverse effect on our
    earnings and could also adversely affect our ability to pay
    dividends on our common shares. Shares of Series A
    Preferred Stock will also receive preferential treatment in the
    event of the liquidation, dissolution or winding up of the
    Company.
Finally, the terms of the Series A Preferred Stock allow
    the Treasury to impose additional restrictions, including those
    on dividends and unilateral amendments required to comply with
    changes in applicable federal law.
Our
    holders of the Series A Preferred Stock have certain voting
    rights that may adversely affect our common shareholders, and
    the holders of the Series A Preferred Stock may have
    interests different from our common shareholders.
In the event that we fail to pay dividends on the Series A
    Preferred Stock for a total of at least six quarterly dividend
    periods (whether or not consecutive), the Treasury will have the
    right to appoint two directors to our board of directors until
    all accrued but unpaid dividends have been paid. Otherwise,
    except as required by law, holders of the Series A
    Preferred Stock have limited voting rights. So long as shares of
    Series A Preferred Stock are outstanding, in addition to
    any other vote or consent of shareholders required by law or our
    Articles of Incorporation, the vote or consent of holders of at
    least
    66
2
/
3
%
    of the shares of Series A Preferred Stock outstanding is
    required for:
•
Any authorization or issuance of shares ranking senior to the
    Series A Preferred Stock;
•
Any amendments to the rights of the Series A Preferred
    Stock so as to adversely affect the rights, preferences,
    privileges or voting power of the Series A Preferred
    Stock; or
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•
Consummation of any merger, share exchange or similar
    transaction unless the shares of Series A Preferred Stock
    remain outstanding, or if we are not the surviving entity in
    such transaction, are converted into or exchanged for preference
    securities of the surviving entity and the shares of
    Series A Preferred Stock remaining outstanding or such
    preference securities have the rights, preferences, privileges
    and voting power of the Series A Preferred Stock.
The holders of our Series A Preferred Stock, including the
    Treasury, may have different interests from the holders of our
    common stock, and could vote to block the foregoing
    transactions, even when considered desirable by, or in the best
    interests of, the holders of our common stock.
We
    rely heavily on our management team and the loss of key officers
    may adversely affect operations.
Our success has been and will continue to be greatly influenced
    by the ability to retain existing senior management and, with
    expansion, to attract and retain qualified additional senior and
    middle management. We recently had a number of changes in our
    senior management team, including the promotions of our new
    Chief Financial Officer and Chief Operating Officer and the
    appointment of a new Chief Risk Officer. The departure of any of
    our senior management could have an adverse effect on us.
Our participation in the TARP Capital Purchase Program could
    also have an adverse effect on our ability to attract and retain
    qualified executive officers. Legislation and rules applicable
    to the TARP Capital Purchase Program participants include
    extensive new restrictions on our ability to pay retention
    awards, bonuses and other incentive compensation to our Chief
    Executive Officer during the period in which the Series A
    Preferred Stock is outstanding. Other restrictions are not
    limited to our Chief Executive Officer and cover other employees
    whose contributions to revenue and performance can be
    significant. The limitations may adversely affect our ability to
    recruit and retain these key employees in addition to our senior
    executive officers, especially if we are competing for talent
    against institutions that are not subject to the same
    restrictions. The Federal Reserve, and perhaps the FDIC, are
    contemplating proposed rules governing the compensation
    practices of financial institutions and these rules, if adopted,
    may adversely affect our management retention and limit our
    ability to promote our objectives through our compensation and
    incentive programs and, as a result, adversely affect our
    results of operations and financial condition.
The full scope and impact of these limitations is uncertain and
    difficult to predict. The Secretary of the Treasury has adopted
    standards that implement certain compensation limitations, but
    these standards have not yet been broadly interpreted and
    remain, in many respects, ambiguous. The new and potential
    future legal requirements and implementing standards under the
    Capital Purchase Program may have unforeseen or unintended
    adverse effects on the financial services industry as a whole,
    and particularly on Capital Purchase Program participants,
    including us. It will likely require significant time, effort
    and resources on our part to interpret and apply them. If any of
    our regulators believe that we are not in compliance with new
    and future legal requirements and implementing standards, it
    could subject us to regulatory actions or otherwise adversely
    affect our management retention and, as a result, our results of
    operations and financial condition.
Even if we redeem our Series A Preferred Stock and
    repurchase the warrant issued to the Treasury, we will continue
    to be subject to evolving legal and regulatory requirements that
    may, among other things, require increasing amounts of our time,
    effort and resources to ensure compliance.
Internal
    control systems could fail to detect certain
    events.
We are subject to many operating risks, including, without
    limitation, data processing system failures and errors, and
    customer or employee fraud. There can be no assurance that such
    an event will not occur, and if such an event is not prevented
    or detected by our other internal controls and does occur, and
    it is uninsured or is in excess of applicable insurance limits,
    it could have a significant adverse impact on our reputation in
    the business community and our business, financial condition and
    results of operations.
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Our
    operations could be interrupted if third party service providers
    experience difficulty, terminate their services or fail to
    comply with banking regulations.
We depend, and will continue to depend to a significant extent,
    on a number of relationships with third-party service providers.
    Specifically, we utilize software and hardware systems for
    processing, essential web hosting, debit and credit card
    processing, merchant processing, Internet banking systems and
    other processing services from third-party service providers. If
    these third-party service providers experience difficulties or
    terminate their services, and we are unable to replace them with
    other qualified service providers, our operations could be
    interrupted. If an interruption were to continue for a
    significant period of time, our business, financial condition
    and results of operations could be materially adversely affected.
Confidential
    customer information transmitted through the Bank's online
    banking service is vulnerable to security breaches and computer
    viruses, which could expose the Bank to litigation and adversely
    affect its reputation and ability to generate
    deposits.
The Bank provides its customers the ability to bank online. The
    secure transmission of confidential information over the
    Internet is a critical element of online banking. The
    Bank's network could be vulnerable to unauthorized access,
    computer viruses, phishing schemes and other security problems.
    The Bank may be required to spend significant capital and other
    resources to protect against the threat of security breaches and
    computer viruses, or to alleviate problems caused by security
    breaches or viruses. To the extent that the Bank's
    activities or the activities of its customers involve the
    storage and transmission of confidential information, security
    breaches and viruses could expose us and the Bank to claims,
    litigation and other possible liabilities. Any inability to
    prevent security breaches or computer viruses could also cause
    existing customers to lose confidence in the Bank's systems
    and could adversely affect its reputation and our ability to
    generate deposits.
Potential
    acquisitions may disrupt our business and dilute shareholder
    value.
We continuously consider merger and acquisition opportunities
    and conduct due diligence activities related to possible
    transactions with other financial institutions. As a result,
    merger or acquisition discussions and, in some cases,
    negotiations may take place and future mergers or acquisitions
    involving cash, debt or equity securities may occur at any time.
    Acquisitions typically involve the payment of a premium over
    book and market values, and, therefore, some dilution of our
    stock's tangible book value and net income per common share
    may occur in connection with any future transaction. In
    addition, while loss sharing arrangements currently associated
    with FDIC-assisted transactions provide some level of risk
    reduction; these arrangements do not completely eliminate risk.
    To the extent we would participate in an FDIC-assisted
    transaction there can be no assurances that any positive
    expected results of such a transaction would fully materialize.
Furthermore, failure to realize the expected revenue increases,
    cost savings, increases in geographic or product presence,
and/or
other
    projected benefits from an acquisition could have a material
    adverse effect on our financial condition and results of
    operations. We may seek merger or acquisition partners that are
    culturally similar, have experienced management and possess
    either significant market presence or have potential for
    improved profitability through financial management, economies
    of scale or expanded services. We do not currently have any
    specific plans, arrangements or understandings regarding such
    expansion.
We cannot say with certainty that we will be able to consummate,
    or if consummated, successfully integrate future acquisitions or
    that we will not incur disruptions or unexpected expenses in
    integrating such acquisitions. In attempting to make such
    acquisitions, we anticipate competing with other financial
    institutions, many of which have greater financial and
    operational resources than us. Acquiring other banks,
    businesses, or branches involves various risks commonly
    associated with acquisitions, including, among other things:
•
Potential exposure to unknown or contingent liabilities of the
    target company;
•
Exposure to potential asset quality issues of the target company;
•
Difficulty and expense of integrating the operations and
    personnel of the target company;
•
Potential disruption to our business;
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•
Potential diversion of management's time and attention;
•
The possible loss of key employees and customers of the target
    company;
•
Difficulty in estimating the value of the target
    company; and
•
Potential changes in banking or tax laws or regulations that may
    affect the target company.
We are
    subject to extensive regulation which could adversely affect our
    business.
Our operations are subject to extensive regulation by federal,
    state and local governmental authorities and are subject to
    various laws and judicial and administrative decisions imposing
    requirements and restrictions on part or all of our operations.
    Given the current disruption in the financial markets and
    potential new regulatory initiatives, including the Obama
    Administration's recent financial regulatory reform
    proposal, new regulations and laws that may affect us are
    increasingly likely. Because our business is highly regulated,
    the laws, rules and regulations applicable to us are subject to
    modification and change. There are currently proposed laws,
    rules and regulations that, if adopted, would impact our
    operations.
These proposed laws, rules and regulations, or any other laws,
    rules or regulations, may be adopted in the future, which could
    (i) make compliance much more difficult or expensive,
    (ii) restrict our ability to originate, broker or sell
    loans or accept certain deposits, (iii) further limit or
    restrict the amount of commissions, interest or other charges
    earned on loans originated or sold by us, or (iv) otherwise
    adversely affect our business or prospects for business.
    Moreover, banking regulators have significant discretion and
    authority to address what regulators perceive to be unsafe or
    unsound practices or violations of laws or regulations by
    financial institutions and holding companies in the performance
    of their supervisory and enforcement duties. The exercise of
    regulatory authority by banking regulators over us may have a
    negative impact on our financial condition and results of
    operations. Additionally, in order to conduct certain
    activities, including acquisitions, we are required to obtain
    regulatory approval. There can be no assurance that any required
    approvals can be obtained, or obtained without conditions or on
    a timeframe acceptable to us.
Higher
    FDIC deposit insurance premiums and assessments could adversely
    affect our financial condition.
FDIC insurance premiums increased substantially in 2009, and we
    expect to pay significantly higher FDIC premiums in the future.
    As the large number of recent bank failures continues to deplete
    the Deposit Insurance Fund, the FDIC adopted a revised
    risk-based deposit insurance assessment schedule in February
    2009, which raised deposit insurance premiums. The FDIC also
    implemented a five basis point special assessment of each
    insured depository institution's assets minus Tier 1
    capital as of June 30, 2009, which special assessment
    amount was capped at 10 basis points times the
    institution's assessment base for the second quarter of
    2009. In addition, the FDIC recently approved a rule requiring
    financial institutions to prepay their estimated quarterly
    risk-based assessments for the fourth quarter of 2009 and for
    all of 2010 through and including 2012 in order to re-capitalize
    the Deposit Insurance Fund. Accordingly, the Bank prepaid
    deposit insurance premiums in the amount of $3.3 million on
    December 31, 2009. The rule also provides for increasing
    the FDIC assessment rates by three basis points effective
    January 1, 2011. There can be no assurance that the FDIC
    will not increase premiums further or levy additional special
    assessments, either of which could have a material adverse
    effect on our results of operations and financial condition.
Shares
    eligible for future sale could have a dilutive
    effect.
Shares of our common stock eligible for future sale, including
    those that may be issued in connection with our various stock
    option and equity compensation plans, in possible acquisitions,
    and any other offering of our common stock for cash, and the
    issuance of 405,405 shares underlying the warrant issued to
    the Treasury pursuant to the TARP Capital Purchase Program,
    could have a dilutive effect on the market for our common stock
    and could adversely affect its market price. Our Articles of
    Incorporation authorize 50
,
000,000 shares of which
    8,711,495 shares were outstanding as of December 31,
    2009. In addition there are 282,080 shares subject to
    common stock options outstanding with a weighted average
    exercise price of $5.00 per share.
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Changes
    in accounting standards may impact how we report our financial
    condition and results of operations.
Our accounting policies and methods are fundamental to how we
    record and report our financial condition and results of
    operations. From time to time, the Financial Accounting
    Standards Board changes the financial accounting and reporting
    standards that govern the preparation of our financial
    statements. These changes can be difficult to predict and can
    materially impact how we record and report our financial
    condition and results of operations. In some cases, we could be
    required to apply a new or revised standard retroactively,
    resulting in a restatement of prior period financial statements.
A
    natural disaster or recurring energy shortage, especially in
    California, could harm our business.
Historically, California has been vulnerable to natural
    disasters. Therefore, we are susceptible to the risks of natural
    disasters, such as earthquakes, wildfires, floods and mudslides.
    Natural disasters could harm our operations directly through
    interference with communications, including the interruption or
    loss of our websites, which would prevent us from gathering
    deposits, originating loans and processing and controlling our
    flow of business, as well as through the destruction of
    facilities and our operational, financial and management
    information systems. California has also experienced energy
    shortages, which, if they recur, could impair the value of the
    real estate in those areas affected. Although we have
    implemented several
back-up
systems and protections and maintain business interruption
    insurance, these measures may not protect us fully from the
    effects of a natural disaster. The occurrence of natural
    disasters or energy shortages in California could have a
    material adverse effect on our business, prospects, financial
    condition and results of operations.
Risks
    Related to this Offering and Ownership of Our Common
    Stock
The
    market price of our common stock may decline after the
    offering.
The price per share at which we sell the common stock in this
    offering may be more or less than the market price of our common
    stock on the date the offering is consummated. If the purchase
    price is greater than the market price at the time of sale,
    purchasers will experience an immediate decline in the market
    value of the common stock purchased in this offering. If the
    actual purchase price is less than the market price for the
    shares of common stock, some purchasers in the offering may be
    inclined to immediately sell shares of common stock to attempt
    to realize a profit. Any such sales, depending on the volume and
    timing, could cause the price of our common stock to decline.
    Additionally, because stock prices generally fluctuate over
    time, there is no assurance that purchasers of our common stock
    in the offering will be able to sell shares after the offering
    at a price that is equal to or greater than the actual purchase
    price. Purchasers should consider these possibilities in
    determining whether to purchase shares in the offering and the
    timing of any sales of shares of common stock.
The
    price of our common stock may fluctuate significantly, and this
    may make it difficult for you to resell shares of common stock
    owned by you at times or at prices you find
    attractive.
Stock price volatility may make it difficult for you to resell
    your common stock when you want and at prices you find
    attractive. Our stock price can fluctuate significantly in
    response to a variety of factors including, among other things:
•
Actual or anticipated variations in quarterly results of
    operations;
•
Recommendations by securities analysts;
•
Operating and stock price performance of other companies that
    investors deem comparable to us;
•
News reports relating to trends, concerns and other issues in
    the financial services industry, including the failures of other
    financial institutions in the current economic downturn;
•
Perceptions in the marketplace regarding us
and/or
our
    competitors;
•
Public sentiments toward the financial services and banking
    industry generally;
•
New technology used, or services offered, by competitors;
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•
Significant acquisitions or business combinations, strategic
    partnerships, joint ventures or capital commitments by or
    involving us or our competitors;
•
Failure to integrate acquisitions or realize anticipated
    benefits from acquisitions;
•
Changes in government regulations; and
•
Geopolitical conditions such as acts or threats of terrorism or
    military conflicts.
General market fluctuations, industry factors and general
    economic and political conditions and events, such as economic
    slowdowns or recessions, interest rate changes or credit loss
    trends, could also cause our stock price to decrease regardless
    of operating results as evidenced by the current volatility and
    disruption of capital and credit markets.
Our
    profitability measures could be adversely affected if we are
    unable to effectively deploy the capital raised in this
    offering.
We intend to use the net proceeds of this offering as described
    below in "USE OF PROCEEDS," including but not limited
    to possible opportunistic acquisitions, including FDIC-assisted
    transactions. Although we are periodically engaged in
    discussions with potential acquisition candidates, we are not
    currently party to any purchase or merger agreement.
There can be no assurance that we will be able to negotiate
    future acquisitions on terms acceptable to us. Investing the
    proceeds of this offering in investment grade securities until
    we are able to deploy the proceeds would provide lower margins
    than we generally earn on loans, potentially adversely impacting
    shareholder returns, including earnings per share, net interest
    margin, return on assets and return on equity.
Only a
    limited trading market exists for our common stock, which could
    lead to significant price volatility.
Our common stock is traded on the NASDAQ Global Market under the
    trading symbol "BOCH," but there have historically
    been low trading volumes in our common stock. The limited
    trading market for our common stock may cause fluctuations in
    the market value of our common stock to be exaggerated, leading
    to price volatility in excess of that which would occur in a
    more active trading market of our common stock. Future sales of
    substantial amounts of common stock in the public market, or the
    perception that such sales may occur, could adversely affect the
    prevailing market price of the common stock. In addition, even
    if a more active market in our common stock develops, we cannot
    assure you that such a market will continue or that shareholders
    will be able to sell their shares at or above the price offered
    by this prospectus.
Anti-takeover
    provisions in our articles of incorporation could make a third
    party acquisition of us difficult.
In order to approve a merger or similar business combination
    with the owner of 20% or more of our common stock (an
    "Interested Shareholder"), our Articles of
    Incorporation contain provisions that would require a
    supermajority vote of
    66
2
/
3
%
    of the outstanding shares of the common stock (excluding the
    shares held by the Interested Shareholder or its affiliates).
    These provisions further require that the per share
    consideration to be paid in such a transaction would have to
    equal or exceed the greater of (a) the highest per share
    price paid by the Interested Shareholder (i) within two
    years of the transaction proposal announcement date, or
    (ii) the date the Interested Shareholder acquired a 20%
    -plus ownership interest (if the acquisition occurred less than
    two years before the transaction announcement) and (b) the
    fair market value of the Common Stock on (i) the
    transaction proposal announcement date, or (ii) the date
    the Interested Shareholder acquired a 20% -plus ownership
    interest (if the acquisition occurred less than two years before
    the transaction announcement).
The operation of these provisions could result in the Company
    becoming a less attractive target for a would-be acquirer. As a
    consequence, it is possible that shareholder would lose an
    opportunity to be paid a premium for their shares in an
    acquisition transaction.
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There
    may be future sales or other dilutions of our equity which may
    adversely affect the market price of our common
    stock.
Except as described under "UNDERWRITING," we are not
    restricted from issuing additional shares of common stock,
    including securities that are convertible into or exchangeable
    for, or that represent the right to receive our common stock. In
    addition, we are not prohibited from issuing additional
    securities which are senior to our common stock. Because our
    decision to issue securities in any future offering will depend
    in part on market conditions and other factors beyond our
    control, we cannot predict or estimate the amount, timing or
    nature of any future offerings. Thus, our shareholders bear the
    risk of any future stock issuances reducing the market price of
    our common stock and diluting their stock holdings in us.
The exercise of the underwriters' over-allotment option,
    the exercise of any options granted to our directors and
    employees, the exercise of the outstanding warrants for our
    common stock as referenced above, the issuance of shares of
    common stock in acquisitions and other issuances of our common
    stock could have an adverse effect on the market price of the
    shares of our common stock. In addition, the existence of
    options and warrants to acquire shares of our common stock may
    materially adversely affect the terms upon which we may be able
    to obtain additional capital in the future through the sale of
    equity securities. Any future issuances of shares of our common
    stock will be dilutive to existing shareholders.
The
    holders of our preferred stock and trust preferred securities
    have rights that are senior to those of our holders of common
    stock and that may impact our ability to pay dividends on our
    common stock to our common shareholders and reduce net income
    available to our common shareholders.
At December 31, 2009, our subsidiary trusts had outstanding
    $15.0 million of trust preferred securities. These
    securities are effectively senior to shares of common stock due
    to the priority of the underlying junior subordinated debt. As a
    result, we must make payments on our trust preferred securities
    before any dividends can be paid on our common stock; moreover,
    in the event of our bankruptcy, dissolution, or liquidation, the
    obligations outstanding with respect to our trust preferred
    securities must be satisfied before any distributions can be
    made to our shareholders. While we have the right to defer
    dividends on the trust preferred securities for a period of up
    to five years, if any such election is made, no dividends may be
    paid to our common or preferred shareholders during that time.
We are required to pay cumulative dividends on the
    $17.0 million in Series A Preferred Stock issued to
    the Treasury in the TARP Capital Purchase Program at an annual
    rate of 5% for the first five years and 9% thereafter, unless we
    redeem the shares earlier. We may not declare or pay dividends
    on our common stock or repurchase shares of our common stock
    without first having paid all accrued cumulative preferred
    dividends that are due. Until January 2012, we also may not
    increase our per share common stock dividend rate or repurchase
    shares of our common shares without the Treasury's consent,
    unless the Treasury has transferred to third parties all the
    Series A Preferred Stock originally issued to it.
Our
    future ability to pay dividends and repurchase stock is subject
    to restrictions.
Since we are a holding company with no significant assets other
    than the Bank and our majority-owned mortgage company, we have
    no material source of income other than dividends received from
    the Bank and the mortgage company. Therefore, our ability to pay
    dividends to our shareholders will depend on the Bank's and
    mortgage company's ability to pay dividends to us.
    Moreover, banks and financial holding companies are both subject
    to certain federal and state regulatory restrictions on cash
    dividends. We are also restricted from paying dividends if we
    have deferred payments of the interest on, or an event of
    default has occurred with respect to, our trust preferred
    securities or Series A Preferred Stock. Additionally, terms
    and conditions of our Series A Preferred Stock place
    certain restrictions and limitations on our common stock
    dividends and repurchases of our common stock. See
    "DIVIDEND POLICY."
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An
    investment is not an insured deposit.
An investment in our common stock is not a bank deposit and is
    not insured or guaranteed by the FDIC or any other government
    agency. Your investment in our common stock will be subject to
    investment risk and you may lose all or part of your investment.
USE OF
    PROCEEDS
The net proceeds, after underwriting discounts and commissions
    and estimated expenses, to us from the sale of the common stock
    offered by this prospectus are expected to be approximately
    $28.3 million. If the underwriters exercise their
    over-allotment option in full, we estimate that our net proceeds
    will be approximately $32.5 million. We intend to use the
    net proceeds of this offering (i) for general corporate
    purposes, including contributing additional capital to the Bank,
    (ii) to support our ongoing and future anticipated growth,
    which may include opportunistic acquisitions of all or parts of
    other financial institutions, including FDIC-assisted
    transactions, and (iii) to position us for eventual
    redemption of our Series A Preferred Stock issued to the
    Treasury under the TARP Capital Purchase Program. We do not have
    any agreements or commitments with respect to any current
    transactions. Pending allocation of specific uses, we intend to
    invest the proceeds in short-term interest-bearing investment
    grade securities.
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Table of Contents
CAPITALIZATION
The following table shows our capitalization and regulatory
    capital ratios as of December 31, 2009 on an actual basis
    and on an as-adjusted basis to give effect to the receipt of the
    net proceeds from this offering. The as-adjusted capitalization
    assumes no exercise of the underwriters' over-allotment
    option, that 5,725,191 shares of common stock are sold by
    us at an offering price of $5.24 per share (based on the closing
    price of our common stock on the NASDAQ Global Market on
    February 9, 2010, and that the net proceeds from the
    offering, after deducting the underwriting discounts and
    commissions and estimated offering expenses payable by us, are
    approximately $28.3 million.
As of December 31, 2009
Actual
As Adjusted(1)
(Dollars in thousands, except per share data)
Unaudited
Junior subordinated debt payable to unconsolidated subsidiary
    grantor trusts
$
15,465
$
15,465
Shareholders' equity
Preferred stock, liquidation preference of $1,000 per share;
    2,000,000 authorized; 17,000 issued and outstanding as of
    December 31, 2009
$
16,641
$
16,641
Common stock, authorized 50,000,000 shares without par;
    issued and outstanding 8,711,495, actual; issued and outstanding
    14,436,686 shares, as adjusted
9,730
38,030
Common stock warrant
449
449
Retained earnings
39,004
39,004
Accumulated other comprehensive gain, net of tax
658
658
Non controlling interest in subsidiary
2,325
2,325
Total shareholders' equity
$
68,807
$
97,107
Total capitalization
$
84,272
$
112,572
Per Common Share
Book value per share
$
5.72
$
5.41
Tangible book value per share
5.29
5.15
Regulatory Capital Ratios — Company
Leverage Ratio
9.89
%
12.09
%
Tier 1 Capital
12.06
%
14.74
%
Total Capital
13.31
%
17.09
%
Regulatory Capital Ratios — Bank
Leverage Ratio
9.37
%
11.86
%
Tier 1 Capital
11.57
%
14.61
%
Total Capital
12.83
%
16.96
%
(1)
Assumes that 5,725,191 shares of our common stock are sold
    in this offering at $5.24 per share, our closing price on
    February 9, 2010, and that the net proceeds thereof are
    approximately $28.3 million after deducting underwriting
    discounts and commissions and our estimated expenses. If the
    underwriters' over-allotment option is exercised in full,
    net proceeds are expected to increase to approximately
    $32.5 million.
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Table of Contents
DIVIDEND
    POLICY
The goals of our dividend policy and planning function are in
    accord with our subsidiary Bank's capital strategy and
    overall business plans and objectives. The following summarizes
    the general goals that pertain to our dividend management:
•
Current and future capital adequacy is paramount in determining
    the amount of dividends we should pay to our shareholders;
•
Ensure the safety and soundness of the Bank's deposits,
    while providing an appropriate return to our shareholders;
•
Establish a dividend payout approach that provides consistency
    and opportunity for growth; and
•
Explore new types of dividend vehicles and dividend payout
    programs.
There were approximately 676 holders of our common stock as of
    December 31, 2009, including those held in street name, and
    the market price on that date was $5.28 per share. Cash
    dividends of $0.06 per share were paid on each of
    January 10, 2009, April 10, 2009, July 17, 2009,
    and October 9, 2009 to shareholders of record as of
    December 31, 2008, March 31, 2009, June 30, 2009
    and September 30, 2009. Cash dividends of $0.08 per share
    were paid on each of January 11, 2008, April 11, 2008,
    July 11, 2008 and October 10, 2008 to shareholders of
    record as of December 31, 2007, March 31, 2008,
    June 30, 2008 and September 30, 2008.
We currently expect to pay quarterly cash dividends of at least
    $0.06 per share in the future, but our ability to pay dividends
    is subject to the policy goals listed above and certain
    regulatory requirements. The Federal Reserve Board
    ("FRB") generally prohibits a financial holding
    company from declaring or paying a cash dividend which would
    impose undue pressure on the capital of subsidiary banks or
    would be funded only through borrowing or other arrangements
    that might adversely affect a financial services holding
    company's financial position. The FRB's policy is that
    a financial holding company should not continue its existing
    rate of cash dividends on its common stock unless its net income
    is sufficient to fully fund each dividend and its prospective
    rate of earnings retention appears consistent with its capital
    needs, asset quality and overall financial condition. The power
    of the board of directors of an insured depository institution
    such as the Bank to declare a cash dividend or other
    distribution with respect to capital is subject to statutory and
    regulatory restrictions which limit the amount available for
    such distribution depending upon the earnings, financial
    condition and cash needs of the institution, as well as general
    business conditions.
Pursuant to the terms of the agreements between us and the
    Treasury governing the TARP Capital Purchase Program, we may not
    declare or pay any dividend or make any distribution on our
    common stock other than (i) regular quarterly dividends not
    exceeding an annual aggregate of $0.32 per share;
    (ii) dividends payable solely in shares of our common
    stock; and (iii) dividends or distributions of rights of
    junior stock in connection with a shareholder rights plan.
In addition to the restrictions imposed under federal law, banks
    chartered under California law generally may pay cash dividends
    only to the extent such payments do not exceed the lesser of
    retained earnings of the bank or the bank's net income for
    its last three fiscal years (less any distributions to
    shareholders during such period). In the event a bank desires to
    pay cash dividends in excess of such amount, the bank may pay a
    cash dividend with the prior approval of the Commissioner of the
    Department of Financial Institutions in an amount not exceeding
    the greatest of the bank's retained earnings, the
    bank's net income for its last fiscal year, or the
    bank's net income for its current fiscal year.
Holding
    Company Dividends
All dividends declared and distributed by us will comply with
    applicable state corporate law. The Board of Directors will
    declare dividends only if our Bank subsidiary is considered to
    have adequate and strong earnings. Dividends will be declared
    and ultimately paid only if they are covered by earnings, not
    paid by using borrowed funds, and not a result of unusual or
    nonrecurring gains. All dividends will comply with this policy.
The financial markets and shareholders favorably view a
    consistent dividend. Future capital requirements and corporate
    plans will be considered whenever dividends are initiated,
    increased or decreased.
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PRICE
    RANGE OF COMMON STOCK
The following table presents the range of high and low sale
    prices of our common stock as reported on the NASDAQ Global
    Market for the periods shown below:
Sale Price per Share
High
Low
Year Ending December 31, 2010
First Quarter (through February 9, 2010)
$
5.50
$
5.15
Year Ended December 31, 2009
First Quarter
5.05
3.90
Second Quarter
6.52
4.08
Third Quarter
6.30
4.50
Fourth Quarter
5.99
5.10
Year Ended December 31, 2008
First Quarter
8.59
6.00
Second Quarter
8.34
6.10
Third Quarter
6.95
5.50
Fourth Quarter
6.60
3.92
Year Ended December 31, 2007
First Quarter
12.29
10.98
Second Quarter
12.50
10.82
Third Quarter
11.54
9.45
Fourth Quarter
11.64
8.45
As of December 31, 2009, there were 676 holders of record
    of our common stock and 8,711,495 shares of our common
    stock issued and outstanding. On February 9, 2010, the
    closing sale price for our common stock was $5.24 per
    share, as reported on the NASDAQ Global Market.
DESCRIPTION
    OF CAPITAL STOCK
We are currently authorized to issue two classes of shares
    designated respectively "Common Stock" and
    "Preferred Stock." The number of shares of Common
    Stock authorized is 50,000,000 and the number of shares of
    Preferred Stock authorized is 2,000,000.
Preferred
    Stock and Warrants
The Preferred Stock may be issued from time to time in one or
    more series. The Board of Directors is authorized to fix the
    number of shares of any series of Preferred Stock and to
    determine the designation of any such series. The Board of
    Directors is also authorized to determine or alter the rights,
    preferences, privileges and restrictions granted to or imposed
    upon any wholly unissued series of Preferred Stock. In addition,
    the Board of Directors is authorized, within the limits and
    restrictions stated in any resolution or resolutions of the
    Board of Directors originally fixing the number of shares
    constituting any series, to increase or decrease (but not below
    the number of shares of such series then outstanding) the number
    of shares of any such series subsequent to the issue of shares
    of that series.
We are authorized to issue 2,000,000 shares of preferred
    stock. Preferred shares outstanding rank senior to common shares
    both as to dividends and liquidation preference but generally
    have no voting rights. Pursuant to a Letter Agreement dated
    November 14, 2008, and the Securities Purchase
    Agreement — Standard Terms ("Securities Purchase
    Agreement") we issued to the Treasury 17,000 shares of
    our Series A Preferred Stock for a total price of
    $17.0 million. The Series A Preferred Stock pays
    cumulative dividends at a rate of 5% per year for the first five
    years and thereafter at a rate of 9% per year. Except under
    limited circumstances, the Series A Preferred Stock is
    non-voting.
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If dividends on the Series A Preferred Stock have not been
    paid for an aggregate of six quarterly dividend periods (whether
    or not consecutive), the holders of the Series A Preferred
    Stock will be entitled to elect two additional members of our
    board of directors, at the next annual meeting (or at a special
    meeting called for the purpose of electing the preferred stock
    directors prior to the next annual meeting), and at each
    subsequent annual meeting until all accrued and unpaid dividends
    for all past dividend periods have been paid.
Prior to November 14, 2011, unless we have redeemed the
    Series A Preferred Stock or the Treasury has transferred
    the Series A Preferred Stock to a third party, the consent
    of the Treasury will be required for us to increase our common
    stock dividend or repurchase our common stock or other equity or
    capital securities, other than in connection with benefit plans
    consistent with past practice and certain other circumstances
    specified in the Securities Purchase Agreement. A consequence of
    the Series A Preferred Stock purchase includes certain
    restrictions on executive compensation.
As part of its purchase of the Series A Preferred Stock,
    the Treasury received a warrant ("Warrant") to
    purchase 405,405 shares of our common stock at an initial
    per share exercise price of $6.29. The Warrant provides for the
    adjustment of the exercise price and the number of shares of our
    common stock issuable upon exercise pursuant to customary
    anti-dilution provisions, such as upon stock splits or
    distributions of securities or other assets to holders of our
    common stock, and upon certain issuances of our common stock at
    or below a specified price relative to the initial exercise
    price. The Warrant expires ten years from the issuance date.
    Pursuant to the Securities Purchase Agreement, the Treasury has
    agreed not to exercise voting power with respect to any shares
    of common stock issued upon exercise of the Warrant.
Both the Series A Preferred Stock and Warrant will be
    accounted for as components of Tier 1 capital. The
    Series A Preferred Stock and the Warrant were issued in a
    private placement exempt from registration pursuant to
    Section 4(2) of the Securities Act. Upon the request of the
    Treasury at any time, we have agreed to promptly enter into a
    deposit arrangement pursuant to which the Series A
    Preferred Stock may be deposited and depositary shares
    ("Depositary Shares") may be issued. Neither the
    Series A Preferred Stock nor the Warrant will be subject to
    any contractual restrictions on transfer.
Prior to November 14, 2011, unless we have redeemed the
    Series A Preferred Stock or the Treasury has transferred
    the Series A Preferred Stock to a third party, the consent
    of the Treasury will be required for us to (i) declare or
    pay any dividend or make any distribution on our common stock
    (other than regular quarterly cash dividends of not more than
    $0.08 per share of common stock) or (ii) redeem, purchase
    or acquire any shares of the Company's common stock or
    other equity or capital securities, other than in connection
    with benefit plans consistent with past practice and certain
    other circumstances specified in the Securities Purchase
    Agreement.
The proceeds from the Treasury were allocated based on the
    relative fair value of the Warrant as compared with the fair
    value of the preferred stock. The fair value of the Warrant was
    determined using a valuation model which incorporates
    assumptions including our common stock price, dividend yield,
    stock price volatility and the risk-free interest rate. The fair
    value is determined based on assumptions regarding the discount
    rate (market rate) on our Series A Preferred Stock which
    was estimated to be approximately 9% at the date of issuance.
    The discount will be accreted to par value over a five-year
    term, which is the expected life of our Series A Preferred
    Stock. Capital Purchase Program participants may "opt
    out" by repaying the capital without raising additional
    capital subject to consultation with the appropriate federal
    regulator.
Common
    Stock
Subject to preferences that may be applicable to Preferred
    Stock, the holders of common stock share equally on a per share
    basis any dividends declared by the board of directors out of
    funds legally available. If the Company is liquidated, dissolved
    or wound up, the holders of our common stock will be entitled to
    a ratable share of any distribution to shareholders, after
    satisfaction of all of our liabilities and of the prior rights
    of then outstanding preferred stock. The common stock does not
    include preemptive or other subscription rights to purchase
    additional shares.
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Table of Contents
Holders of our common stock have the right to vote on matters
    submitted to a vote of our shareholders. Under California
    corporate law, holders of common stock are entitled to exercise
    such voting rights on a cumulative basis, unless the Company
    adopts a provision in its Articles of Incorporation or By-Laws
    to eliminate cumulative voting.
In accordance with Section 301.5 of the California
    Corporations Code, a corporation whose shares are listed for
    trading on an approved exchange may eliminate cumulative voting
    for directors by amendment to its articles of incorporation or
    its bylaws. Cumulative voting means that each shareholder may
    cumulate, and cast, a number of votes equal to number of shares
    held, multiplied by the number of directors to be elected. Under
    cumulative voting, a shareholder may withhold votes from certain
    candidates and cast all such cumulated votes for a single
    candidate or split the cumulated votes between multiple
    candidates. At our 2010 Annual Meeting of Shareholders we intend
    to, among other things, submit a proposal to our shareholders to
    amend our By-Laws to eliminate cumulative voting for directors
    to the extent allowed under the California Corporations Code.
    The amendment to eliminate cumulative voting for directors must
    be approved by the holders of a majority of outstanding shares
    of our common stock.
Our common stock is listed on the NASDAQ Global Market under the
    symbol "BOCH."
Transfer
    Agent and Registrar
The transfer agent and registrar for our common stock is
    Registrar and Transfer Company, 10 Commerce Drive, Cranford, New
    Jersey 07016. Telephone
(800) 368-5948.
Restrictions
    on Ownership
The Bank Holding Company Act ("BHCA") generally
    prohibits any company that is not engaged in banking activities
    and activities that are permissible for a bank holding company
    or a financial holding company from acquiring control of us. Any
    holder of 25% or more of our common stock, or a holder of 5% or
    more if such holder otherwise exercises a "controlling
    influence" over us, will generally deemed to control us,
    and may be subject to regulation as a bank holding company under
    the BHCA. Any existing bank holding company would need the prior
    approval of the Federal Reserve Board before acquiring 5% or
    more of our voting stock. In addition, the Change in Bank
    Control Act of 1978, as amended, prohibits a person or group of
    persons from acquiring control of a bank holding company unless
    the Federal Reserve Board has been notified and has not objected
    to the transaction.
Under a rebuttable presumption established by the Federal
    Reserve Board, the acquisition of 10% or more of a class of
    voting stock of a bank holding company with a class of
    securities registered under Section 12 of the Exchange Act,
    such as ours, could constitute acquisition of control of the
    bank holding company.
Under the California Financial Code, no person shall, directly
    or indirectly, acquire control of a California state bank or its
    holding company unless the Department of Financial Institutions
    has approved such acquisition of control. A person would be
    deemed to have acquired control of us if such person, directly
    or indirectly, has the power (i) to vote 25% or more of our
    voting power, or (ii) to direct or cause the direction of
    the management and our policies. For purposes of this law, a
    person who directly or indirectly owns or controls 10% or more
    of our outstanding common stock would be presumed to control of
    us.
In order to approve a merger or similar business combination
    with the owner of 20% or more of our common stock (an
    "Interested Shareholder"), our Articles of
    Incorporation contain provisions that would require a
    supermajority vote of
    66
2
/
3
%
    of the outstanding shares of the common stock (excluding the
    shares held by the Interested Shareholder or its affiliates).
    These provisions further require that the per share
    consideration to be paid in such a transaction would have to
    equal or exceed the greater of (a) the highest per share
    price paid by the Interested Shareholder (i) within two
    years of the transaction proposal announcement date, or
    (ii) the date the Interested Shareholder acquired a 20%
    -plus ownership interest (if the acquisition occurred less than
    two years before the transaction announcement) and (b) the
    fair market value of the Common Stock on (i) the
    transaction proposal announcement date, or (ii) the date
    the Interested Shareholder acquired a 20% -plus ownership
    interest (if the acquisition occurred less than two years before
    the transaction announcement).
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Table of Contents
UNDERWRITING
We are offering the shares of our common stock described in this
    prospectus in an underwritten offering in which Howe Barnes
    Hoefer & Arnett, Inc. is acting as representative of
    the underwriters. We have entered into an underwriting agreement
    with Howe Barnes Hoefer & Arnett, Inc., acting as
    representative of the underwriters named below, with respect to
    the common stock being offered. Subject to the terms and
    conditions contained in the underwriting agreement, the
    underwriters have agreed to purchase the respective number of
    shares of our common stock set forth opposite its name below.
Name
Number of Shares
Howe Barnes Hoefer & Arnett, Inc.
Total
Under the terms and conditions of the underwriting agreement,
    the underwriters are committed to accept and pay for all of the
    shares, if any are taken. In the underwriting agreement, the
    obligations of the underwriters are subject to approval of
    certain legal matters by their counsel, including the
    authorization and the validity of the shares, and to other
    conditions contained in the underwriting agreement, such as
    receipt by the underwriters of officers' certificates and
    legal opinions.
Over-Allotment
    Option
We have granted to the underwriters an option, exercisable
    within 30 days after the date of this prospectus, to
    purchase up
    to          
    additional shares of our common stock. The underwriters may
    exercise the option only for the purpose of covering
    over-allotments, if any, made in connection with the
    distribution of the shares being offered by this prospectus.
Lock-Up
Agreements
Our executive officers and directors have agreed that for a
    period of 90 days from the date of this prospectus, none of
    our executive officers or directors will, without the prior
    written consent of Howe Barnes Hoefer & Arnett, Inc.,
    as the representative of the underwriters, subject to certain
    exceptions, sell, offer to sell or otherwise dispose of or
    transfer any shares of our common stock or any securities
    convertible into or exercisable or exchangeable for our common
    stock. Howe Barnes Hoefer & Arnett, Inc., in its sole
    discretion, may release the securities subject to these
lock-up
agreements at any time without notice.
Commissions
    and Expenses
The underwriters propose to offer the shares of our common stock
    directly to the public at the public offering price set forth
    above, and to certain securities dealers at this price, less a
    concession not in excess of $      per
    share. The underwriters may allow, and the selected dealers may
    re-allow, a concession not in excess of
    $      per share to certain brokers and
    dealers.
The table below shows the per share and total underwriting
    discounts and commissions that we will pay to the underwriters
    and the proceeds we will receive before expenses. We estimate
    that the total expenses of this offering payable by us, not
    including the underwriting discounts and commissions but
    including our reimbursement of certain expenses of the
    underwriters, will be approximately
    $     .
Total Without
Total with
Option
Option
Per Share
Exercised
Exercised
Public offering price
$
$
30,000,000
$
34,500,000
Underwriting discount
Proceeds to us, before expenses
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The offering of the shares of our common stock will be made for
    delivery when, as and if accepted by the underwriters and
    subject to prior sale and to withdrawal, cancellation or
    modification of the offering without notice. The underwriters
    reserve the right to reject any order for the purchase of the
    shares. After the shares are released for sale to the public,
    the underwriters may, from time to time, change the offering
    price and other selling terms.
Neither we nor the underwriters can assure you that an active
    and liquid market will develop for the shares or, if developed,
    that the market will continue. The offering price and
    distribution rate was determined by negotiations between the
    underwriters and us, and the offering price of the shares may
    not be indicative of the market price following the offering.
    The underwriters will have no obligation to make a market in the
    shares, however, and may cease market-making activities, if
    commenced, at any time.
Indemnity
Under the underwriting agreement, we have agreed to indemnify
    the underwriters against certain liabilities, including
    liabilities under the Securities Act of 1933, as amended
    ("Securities Act") and to contribute to payments that
    the underwriters may be required to make in respect of these
    liabilities.
Stabilization
In connection with this offering, the underwriters may engage in
    stabilizing transactions, over-allotment transactions, covering
    transactions, and penalty bids in accordance with
    Regulation M under the Securities Exchange Act of 1934, as
    amended (the "Exchange Act").
•
Stabilizing transactions permit bids to purchase the underlying
    security so long as the stabilizing bids do not exceed a
    specified maximum.
•
Over-allotment involves sales by the underwriters of shares in
    excess of the number of shares the underwriters are obligated to
    purchase, which creates a short position. The short position may
    be either a covered short position or a naked short position. In
    a covered short position, the number of shares over-allotted by
    the underwriters is not greater than the number of shares that
    they may purchase in the over-allotment option. In a naked short
    position, the number of shares involved is greater than the
    number of shares in the over-allotment option. The underwriters
    may close out any covered short position by either exercising
    their over-allotment option or purchasing shares in the open
    market.
•
Covering transactions involve the purchase of common stock in
    the open market after the distribution has been completed in
    order to cover short positions. In determining the source of
    shares to close out the short position, the underwriters will
    consider, among other things, the price of shares available for
    purchase in the open market as compared to the price at which
    they may purchase shares through the over-allotment option. If
    the underwriters sell more shares than could be covered by the
    over-allotment option, a naked short position, the position can
    only be closed out by buying shares in the open market. A naked
    short position is more likely to be created if the underwriters
    are concerned that there could be downward pressure on the price
    of the shares in the open market after pricing that could
    adversely affect investors who purchase in this offering.
•
Penalty bids permit the underwriters to reclaim a selling
    concession from a selected dealer when the common stock
    originally sold by the selected dealer is purchased in a
    stabilizing covering transaction to cover short positions.
These stabilizing transactions, covering transactions and
    penalty bids may have the effect of raising or maintaining the
    market price of our common stock or preventing or retarding a
    decline in the market price of our common stock. As a result,
    the price of our common stock may be higher than the price that
    might otherwise exist in the open market. Neither we nor the
    underwriters make any representation or prediction as to the
    effect that the transactions described above may have on the
    price of our common stock. These transactions may be effected on
    the NASDAQ Global Market or otherwise and, if commenced, may be
    discontinued at any time.
26
Table of Contents
Passive
    Market Making
In connection with this offering, the underwriters and selected
    dealers, if any, who are qualified market makers on the NASDAQ
    Global Market, may engage in passive market making transactions
    in our common stock on the NASDAQ Global Market in accordance
    with Rule 103 of Regulation M under the Exchange Act.
    Rule 103 permits passive market making activity by the
    participants in our common stock offering.
Passive market making may occur before the pricing of our
    offering, or before the commencement of offers or sales of our
    common stock. Each passive market maker must comply with
    applicable volume and price limitations and must be identified
    as a passive market maker. In general, a passive market maker
    must display its bid at a price not in excess of the highest
    independent bid for the security. If all independent bids are
    lowered below the bid of the passive market maker, however, the
    bid must then be lowered when purchase limits are exceeded. Net
    purchases by a passive market maker on each day are limited to a
    specified percentage of the passive market maker's average
    daily trading volume in the common stock during a specified
    period and must be discontinued when that limit is reached. The
    underwriters and other dealers are not required to engage in
    passive market making and may end passive market making
    activities at any time.
Affiliations
Howe Barnes Hoefer & Arnett, Inc. has performed and
    expects to continue to perform financial advisory and investment
    banking services for us in the ordinary course of its business,
    and may have received, and may continue to receive, compensation
    for such services.
LEGAL
    MATTERS
The validity of the securities offered by this prospectus will
    be passed upon for us by Downey Brand LLP. Certain legal matters
    will be passed upon for the underwriters by Graham &
    Dunn PC.
EXPERTS
The consolidated financial statements incorporated in this
    prospectus by reference from the Bank of Commerce Holdings
    Annual Report on
Form 10-K
for the year ended December 31, 2008 have been audited by
    Moss Adams LLP, an independent registered public accounting
    firm, as stated in their report thereon included therein, which
    is incorporated herein by reference. Such consolidated financial
    statements have been so incorporated in reliance upon the report
    of such firm given upon their authority as experts in accounting
    and auditing.
27
Table of Contents
Shares of
    Common Stock
Howe
    Barnes Hoefer & Arnett
,
    2010
Table of Contents
PART II
INFORMATION
    NOT REQUIRED IN THE PROSPECTUS
Item 13.
Other
    Expenses of Issuance and Distribution
The following table sets forth the various expenses to be
    incurred in connection with the sale and distribution of the
    shares of common stock being registered hereby, all of which
    will be borne by us (except any underwriting discounts and
    commissions and expenses incurred for brokerage, accounting, tax
    or legal services or any other expenses incurred in disposing of
    the shares). All amounts shown are estimates except the SEC
    registration fee.
SEC registration fee
$
2,460
FINRA filing fee
$
3,950
Legal fees and expenses
$
200,000
Accounting fees and expenses
$
18,000
Printing fees and expenses
$
11,000
Miscellaneous expenses
$
14,590
Total Expenses
$
250,000
Item 14.
Indemnification
    of Agents of the Corporation
"Agent" means any person who is or was a director,
    officer, employee or other agent of the company, or is or was
    serving at the request of the Company as a director, officer,
    employee or agent of another foreign or domestic corporation,
    partnership, joint venture, trust or other enterprise, or was a
    director, officer, employee or agent of a foreign or domestic
    corporation that was a predecessor corporation of the Company or
    of another enterprise at the request of such predecessor
    Company; "proceeding" means any threatened, pending or
    completed action or proceeding, whether civil, criminal,
    administrative or investigative; and "expenses"
    include without limitation attorneys' fees and any expenses
    of establishing a right to indemnification.
The Company shall indemnify any person who was or is a party or
    is threatened to be made a party to any proceeding (other than
    an action by or in the right of the Company to procure a
    judgment in its favor) by reason of the fact that such person is
    or was an agent of the Company, against expenses, judgments,
    fines, settlements and other amounts actually and reasonably
    incurred in connection with such proceeding if such person acted
    in good faith and in a manner such person reasonably believed to
    be in the best interests of the Company and, in the case of a
    criminal proceeding, if such person had no reasonable cause to
    believe that such person's conduct was unlawful. The
    termination of any proceeding by judgment, order, settlement,
    conviction or upon a plea of
nolo contendere
or its
    equivalent shall not, of itself, create a presumption that such
    person did not act in good faith and in a manner which such
    person reasonably believed to be in the best interests of the
    Company or that such person had reasonable cause to believe that
    such person's conduct was unlawful.
The Company shall indemnify any person who was or is a party or
    is threatened to be made a party to any threatened, pending or
    completed action by or in the right of the Company to procure a
    judgment in its favor by reason of the fact that such person is
    or was an agent of the Company, against expenses actually and
    reasonably incurred by such person in connection with the
    defense or settlement of such action if such person acted in
    good faith, in a manner such person believed to be in the best
    interests of the Company and with such care, including
    reasonable inquiry, as an ordinarily prudent person in a like
    position would use under similar circumstances. The Board of
    Directors of the Company will provide for the indemnification of
    agents to the fullest extent permissible under California law.
No indemnification will be made:
(1) In respect of any claim, issue or matter as to which
    such person shall have been adjudged to be liable to the Company
    in the performance of such person's duty to the Company,
    unless and only to the extent that the court in which such
    proceeding is or was pending shall determine upon application
    that, in view of all the
II-1
Table of Contents
circumstances of the case, such person is fairly and reasonably
    entitled to indemnity for the expenses which such court shall
    determine;
(2) Of amounts paid in settling or otherwise disposing of a
    threatened or pending action, with or without court
    approval; or
(3) Of expenses incurred in defending a threatened or
    pending action, which is settled or otherwise disposed of
    without court approval.
To the extent that an agent of the Company has been successful
    on the merits in defense of any proceeding or in defense of any
    claim, issue or matter therein, the agent shall be indemnified
    against expenses actually and reasonably incurred by the agent
    in connection therewith.
Any indemnification shall be made by the Company only if
    authorized in the specific case, upon a determination that
    indemnification of the agent is proper in the circumstances
    because the agent has met the applicable standard of conduct, by:
(1) A majority vote of a quorum consisting of directors who
    are not parties to such proceeding;
(2) Approval or ratification by the affirmative vote of a
    majority of the shares of the Company represented and voting at
    a duly held meeting at which a quorum is present (which shares
    voting affirmatively also constitute at least a majority of the
    required quorum) or by the written consent of holders of a
    majority of the outstanding shares entitled to vote; for such
    purpose, the shares owned by the person to be indemnified shall
    not be considered outstanding or entitled to vote
    thereon; or
(3) The court in which such proceeding is or was pending,
    upon application made by the Company or the agent or the
    attorney or other person rendering services in connection with
    the defense, whether or not such application by the agent,
    attorney or other person is opposed by the Company.
Expenses incurred in defending any proceeding may be advanced by
    the Company prior to the final disposition of such proceeding
    upon receipt of an undertaking by or on behalf of the agent to
    repay such amount unless it shall be determined ultimately that
    the agent is entitled to be indemnified as authorized.
Nothing shall affect any right to indemnification to which
    persons other than directors and officers of the Company or any
    subsidiary thereof may be entitled by contract or otherwise.
No indemnification or advance shall be made in any circumstance
    where it appears:
(1) That it would be inconsistent with a provision of the
    Articles of Incorporation, as amended, a resolution of the
    shareholders or an agreement in effect at the time of the
    accrual of the alleged cause of action asserted in the
    proceeding in which the expenses were incurred or other amounts
    were paid, which prohibits or otherwise limits
    indemnification; or
(2) That it would be inconsistent with any condition
    expressly imposed by a court in approving a settlement.
Item 15.
Recent
    Sales of Unregistered Securities.
During the last three years, the Company has not sold any shares
    of common stock without registration under the Securities Act.
    Issuance of 17,000 shares of the Company's
    Series A Preferred Stock and a warrant to purchase
    405,405 shares of the Company's common stock is
    subject to an exemption from registration pursuant to
    Section 4(2) of the Securities Act and is described under
    the caption "Description of Capital Stock" and is
    incorporated into this item by reference.
II-2
Table of Contents
Item 16.
Exhibits
EXHIBIT INDEX
Exhibit
Number
Description of Document
1
.1*
Form of Underwriting Agreement.
3
.1
Articles of Incorporation as amended, incorporated by reference
    to EX-3.1 of the
Form 10-12G
filed 12/4/1998.
3
.2
Bylaws as amended, incorporated by reference to EX-3.1 of the
Form 8-K
filed 05/15/2007.
4
.1
Specimen Common Stock Certificate, incorporated by reference to
    EX-4.1 of the
Form 10-12G
filed 12/4/1998.
4
.2
Certificate of determination for the Series A Preferred
    Stock, incorporated by reference to EX-4.1 of the
Form 8-K
filed 11/19/2008.
4
.3
Form of Certificate for the Series A Preferred Stock,
    incorporated by reference to EX-4.2 of the
Form 8-K
filed 11/19/2008.
4
.4
Warrant for purchase of shares of Common stock, incorporated by
    reference to EX-4.3 of the
Form 8-K
filed 11/19/2008.
5
.1*
Legal opinion of Downey Brand LLP.
10
.1
Letter Agreement, dated November 14, 2008, between Bank of
    Commerce Holdings and the United States Department of the
    Treasury, which includes the Securities Purchase
    Agreement — Standard terms attached thereto, with
    respect to the issuance of the Series A Preferred Stock and
    Warrant, incorporated by reference to EX-10.1 of the
Form 8-K
filed 11/19/2008.
10
.2
Office Building Lease between Gairn Partnership/First Avenue
    Square and Redding Bank of Commerce dated July 16, 1998,
    incorporated by reference to EX-10.2 of the
Form 10-12G
filed 12/4/1998.
10
.3
1998 Stock Option Plan, incorporated by reference to EX-10.3 of
    the
Form 10-12G
filed 12/4/1998.
10
.4
Form of Incentive Stock Option Agreement used in connection with
    1998 Stock Option Plan, incorporated by reference to EX-10.4 of
    the
Form 10-12G
filed 12/4/1998.
10
.5
Form of Non-statutory Stock Option Agreement used in connection
    with 1998 Stock Option Plan, incorporated by reference to
    EX-10.5 of the
Form 10-12G
filed 12/4/1998.
10
.7
Directors Deferred Compensation Plan, incorporated by reference
    to EX-10.7 of the
Form 10-12G
filed 12/4/1998.
10
.8
Form of Deferred Compensation Agreement Used In Connection With
    Directors Deferred Compensation Plan, incorporated by reference
    to EX-10.8 of the
Form 10-12G
filed 12/4/1998.
10
.10
Employment contracts dated April 2001, incorporated by reference
    to EX-10.10 of the
Form 8-K
filed 9/27/2001.
10
.11
Affiliated Business Arrangement Agreement, incorporated by
    reference to EX-10.11 of the
Form 8-K
filed 8/20/2004.
10
.12
Office building lease by and between Waybright #3 Partners and
    Redding Bank of Commerce dated 9/23/2005, incorporated by
    reference to EX-99.1 of the
Form 8-K
filed 9/26/2005.
10
.13
Amendment to Employment contracts dated April 2001, incorporated
    by reference to EX-99.1 &99.2 of the
Form 8-K
filed 12/21/2005.
10
.14
Change in Control Agreements, incorporated by reference to
    EX-99.1-99.4 of the
Form 8-K
filed 12/21/2005.
10
.15
Salary Continuation — Blais, incorporated by reference
    to EX-10.15 of the
Form 8-K
filed 12/19/2006.
10
.16
Salary Continuation — Moty, incorporated by reference
    to EX-10.16 of the
Form 8-K
filed 12/19/2006.
10
.17
Salary Continuation — Eslick, incorporated by
    reference to EX-10.17 of the
Form 8-K
filed 12/19/2006.
10
.19
Employment Agreement — Miles, incorporated by
    reference to EX-10.19 of the
Form 8-K
filed 1/03/07.
10
.21
Salary Continuation — Miles, incorporated by reference
    to EX-10.21 of the
Form 8-K
filed 1/03/07.
10
.22
Employment Agreement — Moty, incorporated by reference
    to EX-10.22 of the
Form 8-K
filed 9/27/07.
10
.23
Salary Continuation — Moty, incorporated by reference
    to EX-10.23 of the
Form 8-K
filed 9/28/07.
II-3
Table of Contents
Exhibit
Number
Description of Document
10
.24
Employment contracts dated October 14, 2008, incorporated
    by reference to EX-10.22 of the
Form 8-K
filed 10/17/08.
10
.25
Employment Agreement — Matranga, incorporated by
    reference to EX-10.22 of the
Form 8-K
filed 11/26/08.
11
.1*
Statement re: Computation of Earnings per Share.
14
.0
Bank of Commerce Code of Ethics, incorporated by reference to
    EX-10.12 of the
Form 8-K
filed 2/26/2003.
16
.1
Letter on Change in Certifying Accountants, incorporated by
    reference to EX-16.1 of the
Form 10-12
filed 12/4/1998.
21
.1
Subsidiaries of the Company, incorporated by reference to
    EX-21.1 of the
Form 10-12G
filed 12/4/1998.
23
.1
Consent of Moss Adams LLP.
23
.2*
Consent of Downey Brand LLP.
24
.1
Power of Attorney (see page II-5 of this Registration
    Statement).
*
To be filed by amendment.
Certain instruments with respect to long-term debt of the
    registrant and consolidated subsidiaries are not filed herewith
    pursuant to Item 601(b)(4)(iii) of
Regulation S-K
since the total amount of securities authorized under each such
    instrument does not exceed 10% of the total assets of the
    registrant and its subsidiaries on a consolidated basis. The
    registrant agrees to furnish a copy of any such instrument to
    the SEC upon request.
Item 17.
Undertakings
Insofar as indemnification for liabilities arising under the
    Securities Act of 1933 ("Securities Act") may be
    permitted to directors, officers and controlling persons of the
    registrant pursuant to the foregoing provisions, or otherwise,
    the registrant has been advised that in the opinion of the
    Securities and Exchange Commission such indemnification is
    against public policy as expressed in the Securities Act and is,
    therefore, unenforceable. In the event that a claim for
    indemnification against such liabilities (other than the payment
    by the registrant of expenses incurred or paid by a director,
    officer or controlling person of the registrant in the
    successful defense of any action, suit or proceeding) is
    asserted by such director, officer or controlling person in
    connection with the securities being registered, the registrant
    will, unless in the opinion of its counsel the matter has been
    settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Securities Act and will be governed by the final
    adjudication of such issue.
The undersigned registrant hereby undertakes that:
(1) For purposes of determining any liability under the
    Securities Act, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule 430A and contained in a form of
    prospectus filed by the registrant pursuant to Rule 424(b)
    (1) or (4) or 497(h) under the Securities Act shall be
    deemed to be part of this registration statement as of the time
    it was declared effective.
(2) For the purpose of determining any liability under the
    Securities Act, each post-effective amendment that contains a
    form of prospectus shall be deemed to be a new registration
    statement relating to the securities offered therein, and the
    offering of such securities at that time shall be deemed to be
    the initial bona fide offering thereof.
II-4
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Redding, State of California, on
    February 11, 2010.
BANK OF COMMERCE HOLDINGS
By:
/s/
PATRICK
    J. MOTY
Patrick J. Moty
President & Chief Executive Officer
POWER OF
    ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature
    appears below does hereby constitute and appoint Patrick J. Moty
    and Samuel D. Jimenez, or either of them, as his true and lawful
    attorneys-in-fact and agents, with full power of substitution
    and re-substitution, for him and in his name, place and stead,
    in any and all capacities, to sign this registration statement
    (including all pre-effective and post-effective amendments
    thereto and all registration statements filed pursuant to
    Rule 462(b) which incorporate this registration statement
    by reference), and to file the same, with all exhibits thereto,
    and other documents in connection therewith, with the Securities
    and Exchange Commission, granting unto said attorneys-in-fact
    and agents, and each of them, full power and authority to do and
    perform each and every act and thing requisite and necessary to
    be done in connection therewith as fully to all intents and
    purposes as he might or could do in person, hereby ratifying and
    confirming that all said attorneys-in-fact and agents, or their
    substitute or substitutes may lawfully do or cause to be done by
    virtue hereof.
IN WITNESS WHEREOF, each of the undersigned has executed this
    Power of Attorney as of the date indicated.
Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed below by the following
    persons on behalf of the registrant and in the capacities
    indicated on February 11, 2010.
Signature
Title
/s/
PATRICK
    J. MOTY
President, Chief Executive Officer and Director
(Principal Executive Officer)
/s/
SAMUEL
    D. JIMENEZ
Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
/s/
KENNETH
    R. GIFFORD, JR.
Chairman of the Board of Directors
/s/
ORIN
    BENNETT
Director
/s/
DAVE
    BONUCCELLI
Director
/s/
GARY
    BURKS
Director
/s/
RUSSELL
    L. DUCLOS
Director
/s/
JON
    W. HALFHIDE
Director
/s/
DAVID
    H. SCOTT
Director
/s/
LYLE
    L. TULLIS
Director
II-5
Table of Contents
EXHIBIT INDEX
Exhibit
Number
Description of Document
1
.1*
Form of Underwriting Agreement.
3
.1
Articles of Incorporation as amended, incorporated by reference
    to EX-3.1 of the
Form 10-12G
filed 12/4/1998.
3
.2
Bylaws as amended, incorporated by reference to EX-3.1 of the
Form 8-K
filed 05/15/2007.
4
.1
Specimen Common Stock Certificate, incorporated by reference to
    EX-4.1 of the
Form 10-12G
filed 12/4/1998.
4
.2
Certificate of determination for the Series A Preferred
    Stock, incorporated by reference to EX-4.1 of the
Form 8-K
filed 11/19/2008.
4
.3
Form of Certificate for the Series A Preferred Stock,
    incorporated by reference to EX-4.2 of the
Form 8-K
filed 11/19/2008.
4
.4
Warrant for purchase of shares of Common stock, incorporated by
    reference to EX-4.3 of the
Form 8-K
filed 11/19/2008.
5
.1*
Legal opinion of Downey Brand LLP.
10
.1
Letter Agreement, dated November 14, 2008, between Bank of
    Commerce Holdings and the United States Department of the
    Treasury, which includes the Securities Purchase
    Agreement — Standard terms attached thereto, with
    respect to the issuance of the Series A Preferred Stock and
    Warrant, incorporated by reference to EX-10.1 of the
Form 8-K
filed 11/19/2008.
10
.2
Office Building Lease between Garian Partnership/First Avenue
    Square and Redding Bank of Commerce dated July 16, 1998,
    incorporated by reference to EX-10.2 of the
Form 10-12G
filed 12/4/1998.
10
.3
1998 Stock Option Plan, incorporated by reference to EX-10.3 of
    the
Form 10-12G
filed 12/4/1998.
10
.4
Form of Incentive Stock Option Agreement used in connection with
    1998 Stock Option Plan, incorporated by reference to EX-10.4 of
    the
Form 10-12G
filed 12/4/1998.
10
.5
Form of Non-statutory Stock Option Agreement used in connection
    with 1998 Stock Option Plan, incorporated by reference to
    EX-10.5 of the
Form 10-12G
filed 12/4/1998.
10
.7
Directors Deferred Compensation Plan, incorporated by reference
    to EX-10.7 of the
Form 10-12G
filed 12/4/1998.
10
.8
Form of Deferred Compensation Agreement Used In Connection With
    Directors Deferred Compensation Plan, incorporated by reference
    to EX-10.8 of the
Form 10-12G
filed 12/4/1998.
10
.10
Employment contracts dated April 2001, incorporated by reference
    to EX-10.10 of the
Form 8-K
filed 9/27/2001.
10
.11
Affiliated Business Arrangement Agreement, incorporated by
    reference to EX-10.11 of the
Form 8-K
filed 8/20/2004.
10
.12
Office building lease by and between Wainright #3 Partners and
    Redding Bank of Commerce dated 9/23/2005, incorporated by
    reference to EX-99.1 of the
Form 8-K
filed 9/26/2005.
10
.13
Amendment to Employment contracts dated April 2001, incorporated
    by reference to EX-99.1 &99.2 of the
Form 8-K
filed 12/21/2005.
10
.14
Change in Control Agreements, incorporated by reference to
    EX-99.1-99.4 of the
Form 8-K
filed 12/21/2005.
10
.15
Salary Continuation — Blais, incorporated by reference
    to EX-10.15 of the
Form 8-K
filed 12/19/2006.
10
.16
Salary Continuation — Moty, incorporated by reference
    to EX-10.16 of the
Form 8-K
filed 12/19/2006.
10
.17
Salary Continuation — Eslick, incorporated by
    reference to EX-10.17 of the
Form 8-K
filed 12/19/2006.
10
.19
Employment Agreement — Miles, incorporated by
    reference to EX-10.19 of the
Form 8-K
filed 1/03/07.
10
.21
Salary Continuation — Miles, incorporated by reference
    to EX-10.21 of the
Form 8-K
filed 1/03/07.
10
.22
Employment Agreement — Moty, incorporated by reference
    to EX-10.22 of the
Form 8-K
filed 9/27/07.
10
.23
Salary Continuation — Moty, incorporated by reference
    to EX-10.23 of the
Form 8-K
filed 9/28/07.
10
.24
Employment contracts dated October 14, 2008, incorporated
    by reference to EX-10.22 of the
Form 8-K
filed 10/17/08.
Table of Contents
Exhibit
Number
Description of Document
10
.25
Employment Agreement — Matranga, incorporated by
    reference to EX-10.22 of the
Form 8-K
filed 11/26/08.
11
.1*
Statement re: Computation of Earnings per Share.
14
.0
Bank of Commerce Code of Ethics, incorporated by reference to
    EX-10.12 of the
Form 8-K
filed 2/26/2003.
16
.1
Letter on Change in Certifying Accountants, incorporated by
    reference to EX-16.1 of the
Form 10-12
filed 12/4/1998.
21
.1
Subsidiaries of the Company, incorporated by reference to
    EX-21.1 of the
Form 10-12G
filed 12/4/1998.
23
.1
Consent of Moss Adams LLP.
23
.2*
Consent of Downey Brand LLP.
24
.1
Power of Attorney (see
page II-5
of this Registration Statement).
*
To be filed by amendment.