Headline: Community Bank of the Bay reports higher 2005 Yearend Earnings

Publication: (Press Release)

Dateline: January 19, 2006

Community Bank of the Bay reports higher 2005 Yearend Earnings

OAKLAND, Calif. (Jan. 20, 2006) – Community Bank of the Bay (CBYAA.OB) reported net income of $404,100 for the year ended Dec. 31, 2005 compared to income of $66,400 in the prior year. This represents an increase of 6 times previous years earnings.

“We are pleased to report these earnings as continuing evidence of the successful turnaround Community Bank of the Bay has achieved and continues to achieve. We have introduced new products and programs that have been well received by our marketplace and we expect these positive trends to continue,” stated Brian K. Garrett, President and CEO. “The Oakland 1st Fund has been far more successful then we imagined, having built up to $15 million in a little more then a year since introduction. These monies are specifically set aside for Oakland businesses and residents. We feel by truly recycling these deposits directly back into the community; we are building a sustainable banking model for this market. As long as these deposits increase we will increase our lending activities directly back into the Oakland market.”

During the year of 2005, interest income increased to $3.0 million, up from $1.9 million from the prior year.  Loans also continued to experience strong growth with total loans outstanding climbing to $35 million at the end of the year, an increase of 40 percent from $25 million a year ago.  Total deposits were $44 million at Dec. 31, compared to $33 million at the end 2004.

“New programs such our SBA program, under the guidance of Andrew Yoo, have exceed expectations and we will continue to feature this program as we focus our efforts to assist the East Bay business community. We will be announcing new products and services throughout 2006 to further this commitment to the economic vitality of our market. We will also be adding experienced loan staff to assist these businesses in their banking needs and to meet the increased demand we have seen over the last year.”

On Dec. 31 the bank had assets of $55 million, an increase of 34 percent from $41 million at the end of 2004.

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

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