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California Community Bank Achieves Positive Asset and Loan Growth for 2008

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^{Published in Business and Finance on Tuesday, February 17th 2009 at 10:10 GMT, Last Modified on 2009-02-17 10:12:37 by Market Wire}  

ESCONDIDO, Calif.--([ BUSINESS WIRE ])--California Community Bank (OTCBB:CABK), today released its unaudited fourth quarter and full-year 2008 financial results.

The Bank finished the fourth quarter of 2008 with an asset base of $174,744,000, an increase of $33,039,000, or 23%, from the end of 2007. Total deposits were $146,508,000, up $28,744,000, or 24%, over the same period a year ago. As of December 31, 2008, total gross loans net of deferred fees, the primary revenue driver for the Bank, stood at an all time high of $137,685,000 compared to $116,209,000 at December 31, 2007, a significant increase of $21,476,000, or 18%.

For the fourth quarter of 2008, the Bank reported a net profit of $112,000, or basic earnings per share of 5 cents, versus $105,000, or basic earnings per share of 5 cents, for the comparable period last year. However, despite a profitable fourth quarter, the Bank reported a full-year 2008 loss of $65,000, or a basic loss per share of 3 cents, compared to net income of $335,000, or basic earnings per share of 16 cents, for the full year of 2007.

Larry D. Hartwig, President and CEO, commented, "Fourth quarter and full-year results were very much as anticipated despite adverse political and economic pressures on interest rates. Our loan portfolio continues to perform well even in the current economic environment and we did not have a single non-accrual or impaired loan as of year end. In spite of the serious issues taking place within the financial industry, throughout all of 2008 we continued to proactively serve our community's banking needs - taking local deposits and making loans to qualified borrowers. However, even with a significant increase in earning assets, ongoing rate cuts made by the Federal Reserve and the fiercely competitive pricing environment for local deposits combined to maintain pressure on our net interest margin. Non-interest expenses were also up on a year-over-year basis, principally the result of executing on our strategic plan to increase our footprint in and around San Diego's North County marketplace - most notably, the June 16th opening of our fourth full-service, de-novo branch in the City of Encinitas. Additionally, our mid-year 2007 branch relocation within the Escondido marketplace contributed to the year-over-year increase in non-interest expense. In summary, the combined impact of increases in our loan loss reserve driven by loan growth, an economy that continued to stress our interest margins, and the non-interest expenses that we strategically invested into our franchise over the past year have resulted in a small negative earnings position for 2008."

Hartwig further commented, "We have a strong liquidity position and we substantially exceed the highest regulatory requirements for being well-capitalized. We remain 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 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.