Headline: Community Bank of the Bay Reports Third Quarter Earnings

Publication: (Press Release)

Dateline: October 27, 2005

Community Bank of the Bay Reports Third Quarter Earnings

Oakland, Calif., Oct. 27, 2005 – Community Bank of the Bay (CBYAA.OB) reported net income from core operations of $50,000, for the three months ended September 30, 2005, compared to a loss of $165,000 in the prior year’s third quarter, which excludes grants received from the United States Treasury Department – CDFI Fund.

The bank also reports net income for the nine months ended September 30, 2005 of $172,000 compared to a net loss of $15,000 for the same period last year.  The results for the nine months ending September 30, 2004 include $350,000 in Business Enterprise Awards from the CDFI Fund.  For 2005, the bank will not be receiving an award under the same CDFI program.

“We are very proud of our financial performance this quarter,” said Brian K. Garrett, President and Chief Executive Officer.  “It is evidence of our successful efforts to achieve core profitability on both a monthly and quarterly basis.  This has been a goal of the bank since opening, core earnings, not grants, will be our measure of success in the future.”

During the third quarter 2005, interest income increased to $2.1 million, up from $1.3 million for the same period last year.  Loans also continued to experience strong growth with total loans outstanding climbing to $32 million at the end of the third quarter 2005, an increase of 35 percent from $23 million at September 30, 2004.  Total deposits were $40 million at September 30, 2005, compared to $30 million at the end of the third quarter 2004.

“Our focus on building a solid base of operations is paying off,” said Garrett, acknowledging the outstanding performance of the Bank’s staff and the guidance of the board of directors.  “The support of the local community has been vital to our turnaround, and a cornerstone of our success has been the Oakland 1st Fund.”

The Oakland 1st Fund was created more than a year ago to enhance the economic vitality of Oakland.  Customer deposits designated for the Fund are utilized exclusively for loans to businesses and individuals who agree to use the money in Oakland.  Every deposit product at the Bank qualifies for the Fund, which was created in 2004.  As of September 30, 2005, Oakland 1st Fund deposits totaled $11.2 million.

At September 30, 2005, the Bank had assets of $51 million, an increase of 37 percent from $37 million at the end of the third quarter 2004.

The Bank is located at 1750 Broadway, Oakland, with free parking on site. The office is open from 9:00 a.m. to 4:00 p.m., Monday through Friday. Information on the Bank and its services is available online at www.communitybankbay.com.

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