California Bank of Commerce Announces Results for the 1st Quarter 2009

LAFAYETTE, CA--(Marketwire - April 17, 2009) - California Bank of Commerce (OTCBB: CABC), a unique commercial bank in the San Francisco Bay Area targeting middle market businesses and professionals, today announced financial results for the first quarter 2009, ending March 31. California Bank of Commerce experienced strong year over year growth in key metrics. However, in line with a more challenging environment, the Bank's pace of growth in the first quarter slowed significantly in comparison to the fourth quarter of last year.

First Quarter - Year Over Year Comparison

First quarter 2009 Total Assets reached $138 million compared to $80 million in the first quarter of 2008, increasing $58 million or 72% year over year. Total Loans grew to $99 million in the first quarter of 2009 versus $33 million in the first quarter 2008, and total deposits grew to $107 million over the same period, increasing by $51 million.

Commercial and Industrial (C & I) Loans reached $43 million at the end of the first quarter 2009, increasing by $23 million or 108% over first quarter 2008.

"Business clients are at the center of our strategy. Maintaining C & I loans at 44% of our book of loans reflects our success with this segment," said John Rossell, President and CEO.

Related to its loans to closely held businesses, the Bank's portfolio of term commercial real estate loans reached $37 million at the end of the first quarter 2009, growing by $27 million versus first quarter 2008. The Bank's commercial real estate portfolio is predominately owner-occupied property with lower-than-industry average loan-to-value ratios.

Over the past four quarters, core deposits grew by $40 million, including an $11 million increase in non-interest bearing operating accounts. The Bank also saw significant growth in its money market demand accounts during the same period.

First Quarter 2009 Compared to Fourth Quarter 2008

Total Assets were unchanged from the fourth quarter of 2008. Total Loans grew 1% or $1.3 million in the first quarter of 2009 compared to the fourth quarter 2008. Pay-offs of several commercial real estate loans were offset by increases in construction, SBA and C & I loans. The Bank's loan portfolio remains healthy, with no delinquent or non performing loans as of March 31, 2009.

Total Deposits contracted by $3 million in the first quarter 2009 compared to the fourth quarter 2008, as the Bank reduced its use of large CDs and put renewed emphasis on growing lower cost deposits. Non interest bearing demand deposits reached $21 million in the first quarter 2009, or 20% of total deposits, up from $18 million or 16% of total deposits at the end of the fourth quarter 2008.

Capital and Liquidity for Growth

During the first Quarter, the Bank completed a $4.0 million capital raise after its approval by the U.S. Treasury to participate in their Capital Purchase Program (CPP). The Treasury's CPP is a voluntary program, designed to attract participation by healthy banking institutions whose continued participation in the economy is vital to America's recovery.

"As a community owned bank, we share the business community's concern about an overzealous federal government. And, we don't need capital today. But, the business community needs banks that it can count on and we mean to be one of those. With this new capital in place and with a Tier 1 Leverage Ratio of 17% at March 31, 2008, we are positioned to push boldly ahead, despite today's difficult capital markets," said Rossell.

The Bank continues to put emphasis upon maintaining a strong liquidity position. The Bank had over $23 million in cash and cash equivalents at March 31, 2009.

"California Bank of Commerce has positioned itself as a favored choice of closely held Bay Area businesses. We believe our focus on established business clients and their owners and operators, combined with our conservative financial management, will continue to provide value to both investors and clients alike," 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.

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