California Bank of Commerce Announces Results for the 4th Quarter 2008

LAFAYETTE, CA--(Marketwire - January 16, 2009) - California Bank of Commerce (OTCBB: CABC), a unique commercial bank in the San Francisco Bay Area targeting middle market businesses and professionals, today announced financial results for the year and quarter ended December 31, 2008. Completing its first full year, California Bank of Commerce experienced strong growth in assets, loans, and deposits. Total Assets grew $84 million to $137 million at year end 2008 versus $53 million at year end 2007. Total Loans grew $79 million to $97 million at year end 2008 versus year end 2007, and Total Deposit grew $82 million over the same period.

Comparing the fourth quarter to the third quarter 2008, Total Assets were up by 11% over the end of the third quarter 2008, while Total Loans grew by 25% and Total Deposits grew by 16%. "Despite the difficult economic environment, California Bank of Commerce is attracting deposits and writing loans while maintaining the highest credit and underwriting standards," said John Rossell, President and CEO.

Total Assets at December 31, 2008 stood at $137 million, up $13 million from $124 million at September 30, 2008. During the same period, Total Loans reached $97 million, growing $19 million from $78 million at September 30, 2008. The Bank's loan portfolio remains very healthy with no delinquent or non-performing loans as of December 31, 2008.

California Bank of Commerce continues to grow and diversify its deposit base. Total deposits reached $111 million at December 31, 2008, increasing $15 million from September 30, 2008. Non-Interest bearing deposits reached $18 million or 16% of total deposits at the end of December, up from $14 million or 15% of total deposits at the end of September 2008.

The Bank's net interest margin improved to 3.37% for the month of December compared to 3.28% in November and 3.16% in October. For the quarter ending December 31, 2008, net interest margin was 3.27% versus 3.15% for the quarter ending September 30, 2008.

The Bank continues to reduce its quarterly operating loss as it moves toward breakeven. Continued improvements in the Bank's operating earnings were the result of both strong loan growth and lower cost of funds.

"While many banks are either not lending money or doing so at exceptionally high prices, we continue to lend to established businesses at competitive prices. California Bank of Commerce will continue to strive for market share while maintaining a lower average deposit cost relative to our peer group," said John Rossell.

The Bank is well capitalized with a Tier 1 Leverage Ratio of 15% at December 31, 2008. In addition, the Bank maintains strong liquidity with over $22 million in cash and cash equivalents at year-end.

About California Bank of Commerce

California Bank of Commerce was designed and built to provide a unique banking experience for businesses, entrepreneurs, and their families. California Bank of Commerce provides a broad range of commercial banking and advisory services to mid-market businesses and professionals throughout the San Francisco Bay Area. For more information on California Bank of Commerce and our unique banking experience, call us at 925-283-2265, or visit us at www.californiabankofcommerce.com.

Contact Information: Contact: Mark DeVincenzi 925-444-2916