Community Business Bank Reports 2008 First Quarter Earnings.

WEST SACRAMENTO, Calif. -- Community Business Bank (OTCBB:CBBC) today reported earnings for the first three months of 2008 of $42,000, or $.02 per diluted share, compared with earnings of $8,000, or less than $.01 per diluted share for the comparable period one year ago.

Financial Highlights

* Total loans increased by 45%, or $36 million to $116 million, compared with $80 million in Q1 2007

* Allowance for loan loss was 1.08% of total loans, compared with 1.25% in Q1 2007

* Deposits increased by 30%, or $20 million to $86 million, compared with $67 million in Q1 2007

* Noninterest bearing deposits increased 61%, or $4.8 million to $12.6 million, compared with $7.8 million in Q1 2007

* Other borrowings increased by 61%, or $10.8 million to $17.8 million, compared with $7 million in Q1 2007

Operating Results

Net interest income for the three months ending March 31, 2008 increased $273,000 or 28% over that of March 2007. This improvement was primarily a result of average earning assets increasing by $33 million.

Noninterest income for the three months ending March 31, 2008 decreased by $13,000 to $90,000, down from $102,000 in the same time period a year earlier. This reduction was primarily due to a decrease in gains on sale of loans.

Management's assessment of the adequacy of the ALLL takes into consideration changes in loan volumes, concentrations and other qualitative factors including loan growth, which is increasing in 2008 as compared to 2007.

Noninterest expense rose $202,000 in the first three months of 2008 over the same period in 2007. This reflects higher salaries and employee benefits associated with an increase in the number of staff as well as higher occupancy expense related to new and / or expanded Bank facilities. Higher regulatory assessments, professional fees and data processing expense related to the Bank's growth also contributed to this increase.

Net income as of March 31, 2008 totaled $42,000, or $0.02 per diluted share, compared with earnings of $8,000, or less than $.01 per diluted share for the corresponding period in 2007.

Balance Sheet Summary

As of March 31, 2008, total loans grew by 45% or $36 million to $116 million from $80 million at the end of the first quarter of 2007. Construction loans accounted for the largest percentage of the total loan portfolio at 29% of total loans, down from 46% one year ago. The concentration of commercial real estate loans, at 26%, was equal to last year at the same time. Commercial and industrial loans represent 20% of the Bank's portfolio at March 31, 2008, up from 11% one year ago.

As of March 31, 2008, the allowance for loan and lease losses (ALLL) was $1.25 million, or 1.08% of gross loans, compared with $1,000,000, or 1.25% of gross loans at the end of the first quarter 2007. Management's assessment of the adequacy of the ALLL takes into consideration changes in loan volumes, concentrations and other qualitative factors including loan growth, which is increasing in 2008 as compared to 2007. The Bank continues to maintain strong asset quality overall, however, Management recognizes that 2008 will pose new credit challenges for which it must be prepared to manage. Non-performing loans (defined as non-accrual loans and loans 90 days or more past due and still paying interest) totaled $1,746,000 or 1.5% of total loans at March 31, 2008, as compared to zero at March 31, 2007.

Total deposits were $86 million at March 31, 2008 compared with $67 million a year ago. The largest growth was from wholesale certificates of deposit. Wholesale certificates of deposits increased by $24.6 million compared with a year ago. Management has implemented a Liability Management Strategy in order to drive down its cost of funds. Replacement of high-cost promotional retail CDs with wholesale funding is part of the initial phase of this program. Noninterest Bearing DDA increased $4.8 million since March 2007, as calling efforts start to reap benefits. Retail CDs decreased $14 million from a year ago, once again primarily due to the run-off of higher-cost "specials" and replacement with alternative funding sources.

Shareholders' equity at March 31, 2008 increased by $319,000 to $19.0 million from $18.7 million a year ago. These increases were primarily due to reaching profitability during 2007 as well as accounting for stock options. The Bank continues to be "well-capitalized" under all regulatory categories.

"The first quarter of 2008 has been a very difficult time for the financial service industry," said John DiMichele, President and Chief Executive Officer. "Significant problems have arisen in many sectors that have impacted the performance of banks. Community Business Bank is not immune to these market conditions, but has taken steps quickly to address any deterioration in our credit portfolio."

"This type of market also provides the Bank with tremendous opportunities that will result in profitable business customers in the future," stated DiMichele. "We believe that with our experienced staff, commitment to our customers and hard work, we will continue to make progress toward our goal to be a high-performing community bank."

CONSOLIDATED BALANCE SHEETS (Unaudited)     >  >             >  >




- $ in thousands                            >  >             >  >




                                            >  >             >  >
3/31/2008


3/31/2007
ASSETS                                      >  >             >  >




Cash & Due From                         >  >             >  >          $
1,008

$
1,338
Fed Funds Sold                              >  >             >  >          -

-


Investment Securities                       >  >             >  >
5,002


7,922
Loans Net of Deferred Fees                  >  >             >  >
116,175


79,970
Allowance for Loan Losses                   >  >             >  >
(1,250)


(1,000)
Net Loans                                   >  >             >  >
114,925


78,970
Premises and Equipments, Net                >  >             >  >
1,406


3,662
Accrued Interest Receivable                 >  >             >  >
560


535
Other Assets                                >  >             >  >
1,847


223
TOTAL ASSETS                                >  >             >  >          $
124,748

$
92,650
                                            >  >             >  >




LIABILITIES & SHAREHOLDERS' EQUITY      >  >             >  >




Non-interest Bearing Deposits               >  >             >  >
12,618


7,818
Interest Bearing Deposits                   >  >             >  >
73,876


58,745
Total Deposits                              >  >             >  >
86,494


66,563
Accrued expenses/other liabilities          >  >             >  >
1,400


313
Other borrowings                            >  >             >  >
17,808


7,047
Total Liabilities                           >  >             >  >
105,702


73,923
Total Shareholders' Equity                  >  >             >  >
19,046


18,727
Total Liabilities and Shareholders' Equity  >  >             >  >          $
124,748

$
92,650
[TABLE OMITTED]

The Bank's Call Reports are available for review or download directly from the FDIC website at www.fdic.gov, or through the link at the Bank's website at www.communitybizbank.com.

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and factors such as: (1) the impact of changes in interest rates, (2) fluctuation in economic conditions, (3) competition in the Company's defined market, (4) the Company's ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.