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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-K/A
Amendment No. 3
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2007 Commission File Number 0-25135
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
For the
transition period from to
Bank of Commerce Holdings
(Exact name of Registrant as specified in its charter)
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California
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94-2823865 |
(State or jurisdiction of incorporation
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(I.R.S. Employer Identification Number) |
or organization) |
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1901 Churn Creek Road |
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Redding, California
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96002 |
(Address of principal executive offices)
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(Zip Code) |
Registrants telephone number, including area code:(530) 722-3955
(None)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
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Common Stock, No Par Value per share
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NASDAQ National Market |
Indicate by check mark if the registrant is a well-known seasoned issuer as defined
in Rule 405 of the Securities Act. Yes o No þ
Indicate by check mark if the registrant is not required to file reports pursuant
to Section 13 or Section 15(d) of the Exchange Act.
Yes o No þ
Indicate by check mark whether the Registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes þ No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K is not contained herein, and will not be contained, to the best of
the Registrants knowledge, in definitive proxy or information statements
incorporated by reference to Part III of this Form 10-K or any amendment to this
Form 10-K. þ
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):
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Large accelerated filer
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Accelerated filer o |
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Non-accelerated filer
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(Do not check if a smaller reporting company) |
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Smaller reporting company
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Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act) Yes o No þ
As of the last day of the second fiscal quarter of 2007, the aggregate market
value of the registrants common stock held by non-affiliates of the registrant
was ($65,041,812) based on the closing sale price of $10.82 as reported on the
NASDAQ National Market (National Association of Securities Dealers Automated
Quotation System National Market System) as of June 30, 2007.
Indicate the number of shares outstanding of each of the issuers classes of
common stock, as of the last practicable date.
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Class
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Outstanding at September 25, 2008 |
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Common Stock, No par value per share
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8,711,495 |
DOCUMENTS INCORPORATED BY REFERENCE
None.
EXPLANATORY NOTE
On September 23, 2008, Management received a telephone call from the Securities
and Exchange Commission in regards to Part II, Item 9A. Controls and Procedures
Specifically, in our Company 10-K dated December 31, 2007, Management failed to
provide a conclusion on our Companys disclosure controls and procedures. In
addition, Management failed to include a report of Management on Internal Control
over Financial Reporting. Due to these ommissions, which makes the disclosure
itself not materially compliant, Management concludes that the Companys
disclosure controls and procedures were ineffective at December 31, 2007.
This Amendment No. 3 on Form 10-K/A amends the Annual Report on Form 10-K of Bank
of Commerce Holdings, as filed by the Company on March 14, 2008, and is being
filed to enhance information required by Part II, Item 9A. Except as otherwise
stated herein, no other information contained in the original Filing has been
updated by this Amendment No. 3. All of the information in this
Amendment No. 3
does not modify or update disclosures in the Original Filing (including the
exhibits to the Original Filing, except for the updated Exhibits 31.1, 31.2) other
than as set forth herein.
This
Amendment No. 3 should be read in conjunction with our periodic filings made
with the Securities and Exchange Commission (SEC), subsequent to the date of the
Original Filing, including any amendments to those filings, as well as any Current
Reports filed on Form 8-K subsequent to the date of the Original Filing. In
addition, in accordance with applicable rules and regulations promulgated by the
SEC, this Form 10-K/A includes updated certificates from our Chief Executive
Officer and Chief Principal Financial Officer as Exhibits 31.1 and 31.2.
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TABLE OF CONTENTS
ITEM 9A. CONTROLS AND PROCEDURES
Under SEC rules 13a-15 and 15d-15, each issuer (Company) must maintain disclosure controls,
procedures and internal control over financial reporting. Management is required to evaluate the
effectiveness, as of the end of each fiscal year, of the Companys disclosure controls and
procedures over financial reporting. Managements evaluation must be based on a suitable and
recognized framework. Bank of Commerce Holdings management has adopted the widely accepted COSO
(Committee of Sponsoring Organizations of the Treadway Commission) framework for its evaluation.
The SEC defines internal control over financial reporting as a process designed by, or under the
supervision of, the Companys principal executive and financial officers or persons performing
similar functions. The control process is affected by the Companys Board of Directors, management
and other personnel, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles (GAAP) in the United States of America. Internal control
over financial reporting includes those policies and procedures that:
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Pertain the maintenance of records that in reasonable detail accurately and fairly
reflect the transactions and dispositions of the assets of the issuer; |
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Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with GAAP, and that receipts and
expenditures of the Company are being made only in accordance with authorizations of
management and the Directors of the Company; |
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Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Companys assets that could have a material effect
on the financial statements. |
Management evaluates the effectiveness of the Companys internal control over financial reporting
primarily through periodic testing of key controls. The Institute of Internal Auditors defines a
key control as follows: A key control is a control that, if it fails, means there is at least a
reasonable likelihood that a material error in the financial statements could not be detected on a
timely basis. Management identified twenty-two major operational processes of which forty-seven
key operational controls were earmarked for testing. Under the information technology umbrella,
nine major processes were identified and twenty-two key information systems controls were targeted
for testing. Of the total sixty-nine key controls, 40% of the key controls were tested internally.
The testing scope included the following:
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Minimum sample size was 5% of the transactions |
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Sample size drawn from transactions and activities through out 2007 |
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Testing procedures included examination, inquiry, and observation, depending on the
nature of the control being tested |
It is important to note, that during the month of May 2007, walkthroughs of the Company key
controls were performed. From a control standpoint, a walkthrough is the act of tracing a
transaction through organizational records and procedures. Audit
Standard No. 5 defines a
walkthrough as follows: In a walkthrough, the auditor traces a transaction from origination
through the companys information systems until it is reflected in the Companys financial
reports. Based on the lack of significant exceptions noted during the walkthrough process, the
above testing was deemed appropriate.
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Effectiveness of Disclosure Controls and Procedures
The Company, under the supervision and with the participation of its management, including the
Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design
and operation of the Companys disclosure controls and procedures (as defined in Rule 13a-15(e)
and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of December 31, 2007.
In the original 10-K filing for the fiscal year December 31, 2007, Management failed to provide a
conclusion on disclosure controls and procedures. The omission of this conclusion through
inadequate wording makes the disclosure noncompliant with SEC filing rules. In addition, Management
failed to include a report of Management on Internal Control over Financial Reporting. Based on
these omissions, the Chief Executive Officer and the Chief Financial Officer conclude that the
Companys disclosure controls and procedures at December 31, 2007 were ineffective in timely making
known to them material disclosures required to be disclosed in the Companys reports filed or
submitted under the Exchange Act. The Company remedied this failure in the effectiveness of our
disclosure controls and procedures by amending our Original Annual Report to include the required
managements report. We have implemented additional controls and procedures designed to ensure that
the disclosure provided by the Company meets the then current requirements of the applicable filing
made under the Exchange Act.
During the quarter ended December 31, 2007, there have been no changes in the Companys internal
controls over financial reporting that have materially affected, or are reasonably likely to
materially affect, these controls.
Managements Annual Report on Internal Control over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control
over financial reporting for the Company (as defined in Rule 13a-15(f) and 15d-15(f) under the
Securities Exchange Act of 1934, as amended).
Internal control over financial reporting is defined under the Exchange Act as a process designed
by, or under the supervision of, our CEO and CFO and effected by our board of directors, management
and other personnel, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles and includes those policies and procedures that:
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Pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of our
assets; |
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Provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that our receipts
and expenditures are being made only in accordance with authorizations
of our management and directors; and |
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Provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use or disposition of our assets that
could have a material effect on the financial statements. |
Because of its inherent limitation, internal control over financial reporting may not prevent or
detect misstatements. Also, projections of any evaluations of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies and procedures may deteriorate. Accordingly, even an
effective system of internal control over financial reporting will provide only reasonable
assurance with respect to financial statement preparation.
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Our management, with the participation of our CEO and CFO, evaluated the effectiveness of the
Companys internal control over financial reporting as of December 31, 2007. In making this
assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations
of the Treadway Commission in Internal Control Integrated Framework. Based on this evaluation
and those criteria, our management, with the participation of our CEO and CFO, concluded that, as
of December 31, 2007, our internal control over financial reporting was effective.
This Annual Report does not include an attestation report of our registered public accounting firm
regarding our internal control over financial reporting. Managements report was not subject to
attestation by our registered public accounting firm pursuant to temporary rules of the SEC that
permit us to provide only managements report in this Annual Report.
ITEM 9B. OTHER INFORMATION
The registrant must disclose under this item any information required to be disclosed in a report
on Form 8-K during the fourth quarter of the year covered by this Form 10-K, but not reported.
None to report.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on September 26, 2008.
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BANK OF COMMERCE HOLDINGS
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By |
/s/ Patrick J. Moty
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Patrick J. Moty |
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President, Chief Executive
Officer and Director of Redding Bank of Commerce |
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POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes
and appoints Patrick J. Moty and Linda J. Miles, and each of them, his or her true and lawful
attorneys-in-fact, each with full power of substitution, for him or her in any and all capacities,
to sign any amendments to this report on Form 10-K and to file the same, with exhibits thereto and
other documents in connection therewith, with the Securities and Exchange Commission, hereby
ratifying and confirming all that each of said attorneys-in-fact or their substitute or substitutes
may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the Company and in the capacities and on the
dates indicated:
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/s/ Patrick J. Moty
Patrick J. Moty
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President, Chief Executive
Officer Redding Bank of
Commerce and Director of
Redding Bank of Commerce
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September 26, 2008 |
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/s/ Linda J. Miles
Linda J. Miles
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Executive Vice President and
Chief Financial Officer and
Assistant Secretary (Principal
Financial and Accounting
Officer)
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September 26, 2008 |
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/s/ Kenneth R. Gifford, Jr.
Kenneth R. Gifford, Jr.
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Chairman
of the Board
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September 26, 2008 |
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/s/ Welton L. Carrel
Welton L. Carrel
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Director
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September 26, 2008 |
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/s/ Russell L. Duclos
Russell L. Duclos
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Director
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September 26, 2008 |
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/s/ John C. Fitzpatrick
John C. Fitzpatrick
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Director
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September 26, 2008 |
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/s/ Harry L. Grashoff, Jr.
Harry L. Grashoff, Jr.
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Director
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September 26, 2008 |
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/s/ David H. Scott
David H. Scott
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Director
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September 26, 2008 |
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/s/
Lyle L. Tullis
Lyle L. Tullis
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Director
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September 26, 2008 |
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/s/ Jon Halfhide
Jon Halfhide
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Director
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September 26, 2008 |
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/s/ Orin Bennett
Orin Bennett
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Director
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September 26, 2008 |
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