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CALIFORNIA COMMUNITY BANK REPORTS FIRST QUARTER 2009 PERFORMANCE RESULTS

ESCONDIDO, CA – (Business Wire) – April 22, 2009 - California Community Bank (OTCBB: CABK.OB), today released its unaudited first quarter 2009 financial results.

 The Bank finished the first quarter of 2009 with an asset base of $184,126,000, an increase of $38,170,000, or 26%, from the end of March 2008. Total deposits were $155,917,000, up $33,795,000, or 28%, over the same period a year ago. As of March 31, 2009, total gross loans net of deferred fees, the primary revenue driver for the Bank, stood at an all time high of $140,347,000 compared to $121,562,000 at March 31, 2008, an increase of $18,785,000, or 15%.

For the first quarter of 2009, the Bank reported a net loss of $250,000, or a basic loss per share of 12 cents, versus a net profit of $13,000, or basic earnings per share of 1 cent, for the comparable period last year.

Larry D. Hartwig, President and CEO commented, "First quarter earnings results were very much as anticipated in light of continued adverse political and economic pressures on interest rates. Our loan portfolio quality continues to perform well even in the current economic environment and we did not have a single non-accrual or impaired loan as of quarter end. However, given the prolonged decline in the overall economic climate we continued to prudently increase our loan loss reserves accordingly. In spite of the serious issues taking place within the financial industry, throughout the first quarter of 2009 we continued to proactively serve our community’s banking needs - taking local deposits and making loans to qualified borrowers. However, even with an increase in earning assets, the Federal Reserve’s sustained low interest rate environment in combination with the fiercely competitive marketplace for local deposits continued to maintain pressure on our net interest margin. Non-interest expenses were also up on a year-over-year basis, principally the result of the June 16, 2008 opening of our fourth full-service, de-novo branch in the City of Encinitas. In summary, the combined impact of increases in our loan loss reserve driven by loan growth and other qualitative factors, an economy that continued to stress our interest margins, and the non-interest expenses that we strategically invested into our franchise have resulted in a negative earnings position for the first quarter of 2009."

Hartwig further commented, “We have a continued strong liquidity position and we substantially exceed the highest regulatory requirements for being “well-capitalized.” We remain fully focused on our relationship style of banking targeted toward small-to-medium size businesses, professionals, and high net worth individuals within our market area. We continue to generate local market deposits and are making loans as usual to qualified borrowers. Having now successfully built a four-branch network and operating infrastructure, we believe that we are well-positioned to further grow the business and improve our financial performance results. We fully recognize the valuable contributions of our highly professional staff in this ongoing process. One building block at a time, we are methodically laying the foundation to create an outstanding community banking organization committed to providing our customers with ‘Real Solutions. Personally Delivered’.”

California Community Bank is headquartered at 1320 West Valley Parkway in Escondido and currently operates 4 branches – Escondido, Encinitas, San Diego, and Vista, CA. For more information on the Bank, please visit www.calcommunitybank.com or call 760-888-1000.

The numbers in this press release are unaudited. Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank’s business, and the intent, belief or current expectations of the Bank, its directors or its officers, are “forward looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank’s performance, regulatory matters and those discussed in filings by the Bank with the Federal Deposit Insurance Corporation.

CONTACT: California Community Bank, Escondido, CA Larry D. Hartwig, 760.888.1001 lhartwig@calcommunitybank.com

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California Community Bank
Condensed Statements of Financial Condition
Unaudited
(dollars in thousands)
Assets
3/31/2009
3/31/2008
Cash and Due from Banks
$ 6,399
$ 4,241
Federal Funds Sold
$ 20,520
$ 9,895
Investment Securities Available for Sale
$ 15,844
$ 8,981
Loans, Net of Deferred Fees & Costs
$ 140,347
$ 121,562
Allowance for Loan Losses
$ (1,781)
$ (1,423)
Net Loans
$ 138,566
$ 120,139
Other Assets
$ 2,797
$ 2,700
Total Assets
$ 184,126
$ 145,956
Liabilities & Shareholders' Equity
3/31/2009
3/31/2008
Deposits
Non-interest Bearing
$ 29,772
$ 24,689
Interest Bearing
$ 126,145
$ 97,433
Total Deposits
$ 155,917
$ 122,122
Other Borrowings
$ 4,000
$ 0
Other Liabilities
$ 945
$ 604
Total Liabilities
$ 160,862
$ 122,726
Total Shareholders' Equity
$ 23,264
$ 23,230
Total Liabilities & Shareholders' Equity
$ 184,126
$ 145,956
California Community Bank
Condensed Statements of Operations
Unaudited
(dollars in thousands, except per share amounts)
Three Months Ended
3/31/2009
3/31/2008
Interest Income
$ 2,367
$ 2,356
Interest Expense
$ 928
$ 1,052
Net Interest Income
$ 1,439
$ 1,304
Provision for Loan Losses
$ 145
$ 65
Net Interest Income After Provision for Loan Losses
$ 1,294
$ 1,239
Noninterest Income
$ 86
$ 59
Noninterest Expense
Salaries & Employee Benefits
$ 924
$ 727
Occupancy & Equipment Expenses
$ 323
$ 268
Other Operating Expense
$ 382
$ 290
Total Noninterest Expense
$ 1,629
$ 1,285
Income (loss) Before Income Taxes
$ (249)
$ 13
Income Taxes (Benefit)
$ 1
$ 0
Net Income (loss)
$ (250)
$ 13
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California Community Bank
Earnings (Loss) Per Share - Basic
Three Months Ended
3/31/2009
3/31/2008
Earnings (Loss) Per Share - Basic
$ (0.12)
$ 0.01
Weighted Average Basic Shares
2,099,293
2,099,293
Net Interest Margin
3.36%
3.68%
California Community Bank
Regulatory Capital Ratios
3/31/2009
3/31/2008
Total Capital (to Risk-Weighted Assets)
15.88%
18.85%
Required to be Well-Capitalized
10.00%
10.00%
Tier 1 Capital ( to Risk-Weighted Assets)
14.70%
17.73%
Required to be Well-Capitalized
6.00%
6.00%
Tier 1 Capital ( to Average Assets)
12.53%
15.90%
Required to be Well-Capitalized
5.00%
5.00%

CONTACT: California Community Bank, Escondido,CA Larry D. Hartwig, 760-888-1001 lhartwig@calcommunitybank.com

 

California Community Bank...
Real Solutions. Personally Delivered.