Community Bank of the Bay Reports Healthy 3rd-Quarter Earnings, Ample Funds Available to Lend to Local Clients, 'Credit-Crunch'-Free.

OAKLAND, Calif. -- Community Bank of the Bay (OTCBB:CBYAA) has announced third-quarter earnings of $97,563, compared to $42,700 for the same period in 2006.

In direct contrast to dire news about credit problems experienced by large banks and lending institutions nationally, the report shows that Community Bank is healthy and eager to lend money to its local clients, proclaimed Brian Garrett, president and chief executive officer of the bank.

The rise in earnings of 138 percent year-to-year topped an overall positive report that also showed increases in assets, deposits, core deposits, total loans and the bank's net interest margin - the critical difference between the amount of money the bank earns on its assets against the amount it pays for those funds.

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Garrett said Community Bank is successfully shifting into more profitable and stable banking services and accounts. "We continue to grow our core deposits at a faster rate, giving us a stable foundation from which to build. We have not fallen into the competitive trap of over-paying for deposits or using brokered funds to support our loan growth. Directors and management are focused on a more sustainable program where we are not subject to market forces that create volatility in assets or earnings."

Garrett noted that community banks in general have not experienced the credit problems that have been reported by larger institutions. "We have never been involved in the subprime debacle and in fact, have money to lend. All of the negative press of a credit crisis may have people thinking all banks are involved. We are not and have not been involved, and are anxious to keep lending as we have in the past."

Two unique Community Bank deposit programs continue to show market acceptance. Garrett said these allow people to "vote with their dollars" by placing deposits into programs that directly benefit their community. The Oakland 1st Fund and the Bay Area Green Fund each allow depositors to designate their deposits for loans exclusively in Oakland and/or for environmental purposes.

"These two programs have been very successful at attracting depositors who want their money to be used for the greater good, and not for loans outside their community or for subprime loans. People are beginning to realize they do have a choice in how their deposits are used and that individuals can have a direct impact on their community, based on where they invest their money. Deposits at mega banks were used to fund most of the subprime loans and create the mess they are in now. Deposits at Community Bank of the Bay stay local and are used by and for the community."

The growth of these two deposit vehicles has allowed Community Bank to increase its net interest margin in a period when many banks have seen a decline. "We are very happy with this trend, despite recent Fed actions," stated Chaula Pandya, Community Bank's senior vice president and chief financial officer.

Information on Community Bank of the Bay and its services is available online at www.communitybankbay.com.