Bank of Commerce Holdings Receives $20.0 Million of Capital from Small Business Lending Fund

Patrick J. Moty, President & CEO of Bank of Commerce Holdings (NASDAQ: BOCH) today announced that the U.S. Department of Treasury has invested $20.0 million in the Company's preferred stock under the Small Business Lending Fund. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified community banks at favorable rates. The interest rate will fluctuate depending on the amount of growth in the Company's small business lending. The initial interest rate on the SBLF funds will be 5% but may be reduced based on the Company's growth in qualified small business lending. Simultaneously with the receipt of the SBLF funds, the Company redeemed the $17 million of shares of preferred stock issued to the Treasury in November 2008 under the U.S. Treasury's Capital Purchase Program (CPP), a part of the Troubled Asset Relief Program. The remainder of the net proceeds was invested by the Company in the Bank as Tier 1 Capital. The Treasury continues to hold a warrant to purchase 405,405 shares of the Company's common stock at a price of $6.29.