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

The Bank finished the second quarter of 2009 with an asset base of $181,781,000, an increase of $33,516,000, or 23%, from the second quarter of 2008.  Total deposits were $153,532,000, up $34,996,000, or 30%, over the same period a year ago.  As of June 30, 2009, total gross loans net of deferred fees, the primary revenue driver for the Bank, stood at an all time high of $149,407,000 compared to $128,962,000 at June 30, 2008, an increase of $20,445,000, or 16%.

For the second quarter of 2009, the Bank reported a net loss of $88,000, or a basic loss per share of 4 cents, versus a net loss of $139,000, or a basic loss per share of 7 cents, for the comparable period last year.  The net loss for the first six months of the year was $338,000, or a basic loss per share of 16 cents, compared to a net loss of $126,000, or a basic loss per share of 6 cents, for the first six months of 2008.

Larry D. Hartwig, President and CEO commented, "While we are disappointed to have recorded a small loss for the second quarter, we achieved core deposit growth and continued to build a high quality loan portfolio, with new customer relationships being the primary growth driver over the last six months.  We continue to be conservative with our approach to credit underwriting in the currently challenging economic environment.  Loan portfolio quality remains high and we are committed to stay vigilant during this period of adverse political and economic pressure.  At quarter end we had no loan delinquencies in the “30 - 89 day classification”, and only a single commercial loan for $151,000 which was placed on non-accrual but is believed to have no loss content.  However, we still see evidence of a prolonged decline in the overall economic climate which resulted in our making prudent increases in our loan loss reserves.  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.  Additionally, our second quarter results include a charge of $80,000 for the FDIC’s special assessment levied on all financial institutions, which they deemed necessary to maintain the Bank Insurance Fund at its required level.  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 second quarter and first half 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.  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 continue to methodically lay 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