Community Bank of the Bay Announces Third Quarter Financial Results

OAKLAND, CA--(Marketwire - Nov 4, 2011) - Community Bank of the Bay (OTCBB: CBYAA)

Financial performance highlights as of September 30, 2011:

• Strong capital ratios with a Tier 1 leverage ratio of 11.33% and Total risk based capital of 16.32%
• 16.2% asset growth year over year
• 14.0% loan growth year over year
• 21.7% deposit growth year over year

Community Bank of the Bay (OTCBB: CBYAA) announces third quarter financial results with a profit of $23,139 for the nine months ending September 30, 2011 compared to a loss of $980,155 for the nine months ended September 30, 2010. For the three months ended September 30, 2011 the Bank had a quarterly loss of $205,952.

"Our new clients come from referrals from our satisfied clients, with the commercial and industrial loans having seen the most growth," stated Brian K. Garrett, Chief Executive Officer. "Our small/medium business clients have weathered the storm. As a small business itself, Community Bank of the Bay thrives when its customers and communities thrive. It is a perfect time for businesses to embrace the 'go local' movement by switching to a community bank. They will discover the litany of benefits that come with banking with a community bank, including a relationship-based banking experience, superior customer service and the pride that comes with reinvesting in one's community."

Community Bank of the Bay provided the following further detail. Total assets as of September 30, 2011 were $132.9 million and represented an increase of $18.5 million compared to September 30, 2010. Net loans totaled $89.4 million and represented an increase of $10.9 million from the prior year, while total deposits of $109.8 million represented an increase of $19.5 million from the prior year. With total shareholder capital of $15.1 million, the Tier 1 risk-based capital ratio of 15.04% exceeds the FDIC's definition of a "well capitalized" institution.

"This quarter marks the first time since we obtained Preferred Lender status that we have strategically held SBA Guaranteed loans instead of selling them for premium income. While this means that in the current quarter we did not benefit from the non-interest income that has boosted prior quarters' earnings, we are building a portfolio of variable-rate, and government guaranteed loans that will provide the Bank with valuable recurring interest income. With almost $28 million of our balance sheet already residing in low yielding cash and cash like securities, we believe the decision to hold these loans was prudent," said William Keller, President and Chief Operating Officer.

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