California Bank of Commerce Announces Results for the 2nd Quarter 2009


LAFAYETTE, CA--(Marketwire - July 29, 2009) - California Bank of Commerce (OTCBB: CABC), a unique commercial bank in the San Francisco Bay Area targeting closely held businesses and professionals, today announced financial results for the second quarter ended June 30, 2009.

"On the eve of its second anniversary, despite the challenging environment we are all facing, California Bank of Commerce continues to build its loan and deposit portfolios. The Bank is attracting new business relationships and deepening existing ones, while maintaining strong capital and liquidity positions," said John Rossell III, President and CEO.

Second Quarter 2009 Highlights

--  Capital ratios substantially exceeded the regulatory standard for
    "well capitalized" with a Total Risk-Based Capital Ratio of 16.38%, Tier I
    Risk Based Capital Ratio of 15.09%, and Tier I Leverage Ratio of 16.10%.
--  Total Assets were $155 million as of June 30, 2009, up $52 million or
    50% from $103 million on the same date one year ago, and up $17 million or
    13% compared to $138 million on March 31, 2009.
--  Total Loans were $111 million as of June 30, 2009, up $57 million or
    over 100% from $54 million on the same date one year ago, and up $12
    million or 12% compared to $99 million on March 31, 2009.
--  Total Deposits were $125 million as of June 30, 2009, up $45 million
    or 56% from $80 million on the same date one year ago, and up $18 million
    or 17% compared to $107 million on March 31, 2009.
--  Non-Interest Bearing deposits were $27 million, representing 21% of
    Total Deposits at June 30, 2009 compared to $13 million or 17% of Total
    Deposits one year ago. Non-Interest Bearing deposits grew by $5 million
    during the second quarter of 2009.
--  The Bank's Net Interest Margin improved to 3.61% for the quarter ended
    June 30, 2009 compared to 2.96% during the second quarter of 2008 and
    compared to 3.17% during the first quarter of 2009.
--  Total Cash and Cash Equivalents stood at $24 million at June 30, 2009,
    relatively unchanged from a year ago and from the previous quarter.
    

As a result of continuing economic weakness, the bank found it prudent to increase its Allowance for Loan and Lease Losses to 1.78% of Total Loans at June 30, 2009, compared to 1.45% as of June 30, 2008 and 1.52% at March 31, 2009. The increase in the allowance was due to management's assessment of the California economy and its potential impact on the Bank's loan portfolio. The Bank had no loan losses during its almost two years in operation. At June 30, 2009, the Bank had no non-accrual or non-performing loans on its books.

Despite the burden of building its allowance for loan and lease losses, the Bank continued to make substantial progress toward breakeven, with strong growth in net interest income and careful management of controllable overhead.

The Bank reported a net loss for the second quarter of $693,984, which represented a $381,880 or 35% improvement over the loss in the second quarter of 2008. Net Income during the second quarter 2009 was negatively impacted by the increase in the Bank's contribution to the allowance for loan losses ($475,000) and by an FDIC special assessment that was levied on all banks during the quarter ($65,790). Excluding the provision for loan losses and FDIC special assessment, the Bank reduced its 2009 second quarter loss by $607,670 compared to the second quarter 2008 and made a $313,139 improvement compared to the first quarter of 2009.

Second Quarter - Year Over Year Comparison

Net Interest Income was $1,257,184 for the second quarter 2009, up $663,292 over the same period in 2008.

Commercial and Industrial (C & I) Loans, the core of the Bank's business focus, reached $48 million at the end of the second quarter 2009, up $20 million or 73% from the end of the second quarter 2008.

Related to its loans to closely held businesses, the Bank's portfolio of term commercial real estate loans reached $42 million at the end of the second quarter 2009, up $22 million from the end of the second quarter 2008.

The Bank's deposit composition improved over the second quarter 2008. Core deposits reached $101 million at the end of the second quarter 2009, up $44 million from the end of the second quarter 2008. Non-interest bearing demand deposits reached $27 million at the end of the second quarter 2009, growing $13 million over the previous 12 months. Interest Bearing core deposits were $74 million at the end of the second quarter, up $31 million from the end of the second quarter 2008.

Second Quarter 2009 Compared to First Quarter 2009

Net Interest Income increased by $215,281 from the first quarter 2009 as a result of strong earning asset growth and a higher net interest margin.

Commercial and Industrial (C & I) Loans increased $4 million or 10% to $48 million from $43 million at the end of the first quarter 2009.

Core Deposits increased $9 million or 10% to $101 million from $92 million in the first quarter 2009. Non-Interest Bearing Demand deposits increased $5 million or 26% to $27 million from $21 million in the first quarter 2009. Other interest bearing core deposits increased during the second quarter, by $4 million to $75 million, from $71 million at the end of the first quarter 2009.

Capital and Liquidity

The Bank remains well capitalized with a Tier 1 Leverage Capital Ratio of 16.10% at June 30, 2009. In addition, the Bank continues to maintain strong liquidity, with over $24 million in cash and cash equivalents at June 30, 2009.

"California Bank of Commerce is making solid progress toward breakeven and remains on plan for the year. The Bank continues to be a favored choice of closely held Bay Area businesses. So, we intend to stay focused on serving established business and their owners and key employees," said Rossell.

About California Bank of Commerce

California Bank of Commerce was designed and built to provide a unique banking experience for businesses, entrepreneurs, and their families. California Bank of Commerce provides a broad range of commercial banking and advisory services to mid-market businesses and professionals throughout the San Francisco Bay Area. For more information on California Bank of Commerce and our unique banking experience, call us at 925-283-2265, or visit us at www.californiabankofcommerce.com.

                       CALIFORNIA BANK OF COMMERCE
                 UNAUDITED SUMMARY FINANCIAL STATEMENTS
                             ($ Thousands)


                                  2nd Quarter   1st Quarter   2nd Quarter
SUMMARY INCOME STATEMENT              2009          2009          2008
                                  ------------  ------------  ------------
Interest income                   $      1,554  $      1,403  $        937
Interest expense                          (297)         (361)         (343)
                                  ------------  ------------  ------------
   Net interest income before
    provision                            1,257         1,042           594
Provision for loan losses                 (475)         (100)         (315)
                                  ------------  ------------  ------------
   Net interest income after
    provision                              782           942           279
Non-interest income                         49            40            50
Non-interest expense                    (1,525)       (1,547)       (1,405)
   Income (loss) before tax
    provision                             (694)         (565)       (1,076)
                                  ------------  ------------  ------------
Provision for income taxes                   -            (1)            -
                                  ------------  ------------  ------------
   Net income (loss) - Period     $       (694) $       (566) $     (1,076)
                                  ============  ============  ============

Weighted average shares
 outstanding                         2,750,000     2,750,000     2,750,000

  Income (loss) per share         $     (0.252) $     (0.206) $     (0.391)




                                  2nd Quarter   1st Quarter   2nd Quarter
SUMMMARY BALANCE SHEET                2009          2009          2008
                                  ------------  ------------  ------------
Assets
Cash and Investments              $     44,433  $     38,858  $     49,015
Loans, net of deferred costs/fees      111,328        98,959        53,791
Loan loss reserve                       (1,975)       (1,500)         (775)
Other                                    1,270         1,263         1,185
                                  ------------  ------------  ------------
     Total Assets                 $    155,056  $    137,580  $    103,216

Liabilities
Demand deposits                   $     26,543  $     21,102  $     13,493
Interest bearing deposits         $     98,335  $     85,964  $     66,645
                                  ------------  ------------  ------------
   Total Deposits                      124,878       107,066        80,138
Other borrowings & other
 liabilities                             6,764         6,640           221
                                  ------------  ------------  ------------
   Total Liabilities                   131,642       113,706        80,359

Common Stock, net                       19,468        19,926        22,857
Preferred Stock, net                     3,946         3,948             -
                                  ------------  ------------  ------------
   Shareholders' equity                 23,414        23,874        22,857
                                  ------------  ------------  ------------
     Total Liabilities and Equity $    155,056  $    137,580  $    103,216

Contact Information: Contact: Mark DeVincenzi 925-444-2916