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Community Bank of the Bay Announces a Profit for the Fourth Consecutive Quarter

Community Bank of the Bay (OTCBB: CBYAA) announces a profit of $122,745 for the second quarter of 2011.

Financial performance highlights for the three months ended June 30, 2011:

• Strong capital ratios with a Tier 1 leverage ratio of 12.07% and total risk based capital of 17.30%
• 19% asset growth year over year
• 21% loan growth year over year
• 22% deposit growth year over year

"This is our fourth consecutive quarter of profitability. We are proud of the progress we have made, evidenced by a profit of $122,745 for the second quarter of 2011 compared to a loss of $1.07 million in the second quarter of 2010," stated Brian K. Garrett, Chief Executive Officer. "We continue to grow through our relationships in the San Jose, Danville and Oakland markets."

Community Bank of the Bay provided the following further detail. Total assets as of June 30, 2011 were $129.1 million and represented an increase of $20.2 million compared to June 30, 2010. Net loans totaled $85.8 million and represented an increase of $14.9 million from the prior year, while total deposits of $105.9 million represented an increase of $19 million from the prior year. With total shareholder capital of $15.2 million, the Tier 1 risk-based capital ratio of 16.02% exceeds the FDIC's definition of a "well capitalized" institution.

"We are pleased to announce that in the second quarter we applied for and received regulatory approval to convert our Danville location to a full-service banking office, and we will begin that process immediately," said William Keller, President and Chief Operating Officer. "This transition is an important step for our continued growth in the Diablo Valley. The conversion to a full service office was made possible by the many high quality relationships developed by our Danville Team of Margie Perry and Lin Radford."

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.