Headline: Community Bank of the Bay 2nd quarter earnings rise substantially

Publication: Press Release

Dateline: Thursday, July 12, 2007

OAKLAND, Calif. (July 12, 2007) - Community Bank of the Bay (CBYAA-OB) has announced second-quarter earnings of $85,091, compared to just $3,900 in the same period in 2006.

The bank’s total loans grew by 33 percent over the year from July, 1 2006 to July 1, 2007, with the total growing from $33 million to $44 million. Its net interest margin (NIM) – the difference between what the bank pays out for money and the rate it earns on those funds – grew to 5.11 percent, up from 4.8 percent a year ago.

Brian Garrett, president and chief executive officer of Community Bank of the Bay, said the bank is successfully shifting its growth strategy into developing more stable, ongoing deposits rather than somewhat higher-cost, timed certificates of deposit.

“Our role as a contributor to our community and a sincere partner with our depositors who want to make sure their money is used for the good of their community is one important key to our customer relationships,” Garrett said. “It’s the very essence of a community bank.  This is economic voting at its finest – the use of dollars to support worthwhile community issues by the very people that live and work here and benefit from these efforts.”

Community Bank has two special deposit programs. The Oakland 1st Fund allows depositors in any type of account to designate their funds to be invested exclusively in Oakland. The service is free. The very successful program had $21.5 million in deposits on June 30, and has funded more than $13 million in loans to Oakland-based businesses and individuals.

The Bay Area Green Fund, a similar program launched earlier this year, allows depositors to designate their money for uses that support loans, programs and companies attempting to make socially responsible or environmentally sound investments in their lives, companies, and communities.

“Our current local market for core deposits is very competitive,” Garrett said. “It will make 2007 a tough year for banks, but we have faith in our clients and our community. Our Oakland 1st Fund and the Bay Area Green Fund should continue to attract depositors who want their money to make a difference.”

Garrett said that as the bank shifted its deposits over the last year from higher-cost TCDs to more non-maturity deposits, the bank’s total deposits dropped very slightly (1.3 percent), to $52,238,427 on June 30, 2007, from $52,947,032 on June 30, 2006. At the same time non-maturity deposits grew (3.2 percent) from $27,387,594 to $28,263,880. The bank added one additional position to its staff, year to year, for a total of 17. Assets dropped slightly (1.5 percent) to $65,555,720 on June 30, 2007, from $66,524,422 on June 30, 2006.

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.