Headline: Community Bank of the Bay 1st Quarter Earnings up 179 Percent

Publication: Press Release

Dateline: Tuesday, May 1, 2007

OAKLAND, Calif.--(BUSINESS WIRE)--Community Bank of the Bay (OTCBB:CBYAA - News) has announced first quarter earnings of $209,173, compared to $75,000 in the same period in 2006 - an increase of 179 percent. The bank's assets grew over the same span from $56,546,000 to $72,031,770, or 27 percent.

Other benchmarks, comparing the first quarter results to the same period a year ago:

• Total deposits grew to $59,254,438, up by 30 percent from $45,624,800.
• Non-maturity deposits showed similar growth; to $29,518,136, up by 33 percent from $22,274,700.
• Total loans grew by nearly $10,000,000, or 32 percent, to $41,193,330.
• The bank's net interest margin grew to 6.13 percent from 5.10 percent a year before.
• Earnings per share of bank stock for the quarter were 11 cents, compared to 4 cents for the period ending March 31, 2006.

Brian Garrett, president and chief executive officer of Community Bank, described the results as "a true measure of the hard work the staff did to recapture the lost income from two real estate loans that depressed earnings in 2006." He explained the bank was able to make a full recovery of one problem loan in March, resulting in significant gains to the bank.

"I fully expect to make a similar recovery on the second property during the second quarter of this year," Garret added. "Wil Hobbs, our senior vice president and chief credit officer, has worked very diligently to bring these problems loans into conformity and then full recovery."

Garrett said other key personnel changes have also taken place. "I have recently retained a person I feel will make significant contributions to the corporation. With the increasingly competitive landscape of financial services, more focus and commitment to the sales and service aspects of banking must be made. We have hired a new, very dynamic sales and marketing vice president to drive our growth and improve all aspects of marketing, Susan Purcell. What is unique about Susan in this position is that she has no banking background. She's asking all the tough questions and brings none of the baggage of 'but we don't do it that way!'"

Garrett also described the bank's newest initiative, The Bay Area Green Fund. "We hope to be a small catalyst in the green movement by using funds deposited by our concerned clients specifically to support loans, programs and companies attempting to make socially responsible or environmentally sound investments in their lives, companies, and communities. We recognize we are a small bank, but if we can make a commitment like this, so can others.

"A good example of our commitment is our new program using the latest technology of remote capture, which allows our clients to deposit checks electronically, without leaving their offices. We call these 'Green Machines - the Pollution Solution,' because no hydrocarbons (gas) are burned to get the monies to the bank. It's a nice twist on how technology can benefit, past the obvious."

"The Oakland 1st Fund also continues to receive tremendous support from the community," said Garrett. "As of March 31, we have more than $24 million in Oakland 1st Fund deposits and $13.7 million in loans to Oakland-based businesses and individuals. Oakland loans represent 33.4 percent of total loans. This percentage represents Community Bank's highest geographic loan concentration. The next highest loan concentration is 12.8 percent from the Berkeley area."

"Our lending team is continually seeking opportunities to fully utilize the Oakland 1st Fund," said Garrett. "We want to make every dime go to good use in this community, so that Oakland continues to become an even more prosperous and vibrant place to live and work."

Community Bank of the Bay is located at 1750 Broadway in Oakland. 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.

For Immediate Release – May. 1, 2007
Media Contacts:

Brian Garrett, CEO, 510-433-5402, bgarrett@communitybankbay.com
Jack Lyness, e-agency Public Relations, 510-304-2411, jlyness@e-agency.com