Community Bank of the Bay Reports Strong 1st Quarter Earnings, as Total Assets, Loans and Deposits Jump 24 Percent and More.

OAKLAND, Calif. -- Community Bank of the Bay (OTCBB:CBYAA) has reported strong earnings and asset growth for the first quarter, ending March 31, 2006. The bank's earnings rose by $134,200 to a net of $75,000 ($0.04 cents per share), compared to a loss of $59,200 in the same quarter of 2005. Total assets grew 26.2 percent to $56.5 million, compared to $44.8 million a year earlier.

The first quarter continued a trend of strong positive growth in the range of 24-27 percent in measures across the board -- in increased deposits, loans, total staff, new programs and in the bank's net interest margin. It was the fourth quarter in a row that the bank showed a profit -- the first time that has happened in the bank's 10-year history.

The growth in earnings might have been even greater but for the impact of income taxes. Because the bank is now regularly profitable, it must accrue for taxes. The benefit it receives from losses on previous operations offsetting its tax liability is minimal. "It's one price of success," noted Brian Garrett, Community Bank's president and chief executive officer.

"While the market experienced a flat yield curve, which has challenged many financial institutions with narrow margins, ours has actually grown from 4.4 percent to 5.1 percent in the last year," Garrett noted. "For that reason we are especially happy with these results."

"Now that we have stabilized the operations of the bank, we can focus our efforts on solid growth, core operations and maximizing profits," Garrett said.

Community Bank of the Bay year-to-year growth
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                                            Q1-06               Q1-05

Earnings/loss for quarter                 $75,000            ($59,200)
Total assets                          $56,546,000         $44,800,000
Total deposits                        $45,624,800         $36,274,000
Non-maturity deposits                 $22,274,700         $17,486,500
Total loans                           $31,201,700         $25,108,000
Net interest margin                           5.1%                4.4%
Total staff                                    20                  15
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