Community Bank of the Bay Releases Its Financial Results for the Second Quarter 2010 After a Successful Stock Offering

OAKLAND, CA -- (Marketwire) -- 07/30/10 -- Community Bank of the Bay (OTCBB: CBYAA) releases its earnings for the second quarter of 2010.

Financial performance highlights for the three months ended June 30, 2010

• Strong capital ratios with a Tier 1 leverage ratio of 12.14 % and total risk based capital of 15.86%
  
  
• 58% loan growth year over year
  
  
• 63% asset growth year over year
  
  
• 51% deposit growth year over year
  
  

"We are pleased to have raised approximately 7.7 million in additional capital. This additional capital will allow the Bank to position ourselves for growth and a return to profitability in future periods," stated Brian K. Garrett, CEO. "While profitability is still lagging, it is not unexpected as we have added new experienced staff and opened offices in new markets and these added costs have negatively impacted earnings in the short term. With the new capital, we will begin to maximize these investments and fully leverage them to our advantage. Our loss for the second quarter of 2010 was 590,979 compared to 2,051,325 in the second quarter of 2009. As demonstrated below, our growth in new business will mitigate the increased operating costs and profitability will return in second half of 2010.

"We gained a lot of momentum in the second quarter and we believe we have set the stage for near term success," said William Keller, President and Chief Operating Officer. "Not only did we further strengthen capital and liquidity and add important members to our Silicon Valley Region and Credit Administration teams, but we also gained the business experience and market knowledge of five new Directors, received Preferred Lender Status from the US Small Business Administration and significantly expanded our client base; especially in the Danville market."

Total Assets as of June 30, 2010 were 108.8MM, and represented an increase of 42.1MM compared to June 30, 2009. With total shareholder Capital of 12MM our Tier 1 risk-based capital ratio of 14.66% exceeds the FDICs definition for a "well capitalized" institution. Net Loans totaled 70.8MM and represented an increase of 26.1MM from the prior year and 6.5M from the prior quarter, while total Deposits of 86.8MM represented an increase of 29.5 from the prior year and 15.4M from the prior quarter. Our Net Interest Margin for the six months ended June 30, 2010 was 4.37% as compared to 3.90% for the six months ended June 30, 2009.

Community Bank of the Bay serves the financial needs of a variety of commercial customers including businesses, professional service firms and nonprofit organizations. Information on the bank is available online at www.communitybankbay.com. Community Bank of the Bay is a member of the FDIC.