California Business Bank Announces Second Quarter Financial Results

California Business Bank (OTCBB:CABB) announces financial results today for the second quarter ended, June 30, 2009.

Highlights:

• The Bank returned to profitability in the second quarter of 2009, posting net income of $11,414, compared to a loss of $172,807 for the first quarter of 2009. This represents the first profitable quarter for the Bank since second quarter 2008.
• Second quarter 2009 net interest income was up by 3.41% over first quarter 2009
• Second quarter 2009 total loans increased by 2.13% or $1.882MM over first quarter 2009
• Second quarter 2009 deposits decreased by 8.12% or $8.081MM compared to first quarter 2009, as the bank continued its progress toward a reduction in wholesale funding sources
• Second quarter asset quality metrics:
  • Total provision for loan losses remained at $2.035MM since December 2008
  • Non-performing assets were $5.54MM or 4.95% of total assets at quarter-end
  • Other Real Estate Owned was $3.34MM or 2.99% of total assets at quarter-end
  • Allowance for credit losses to non-accrual loans was 36.73% at quarter-end
• Tangible common equity capital was 13.44% at March 31, 2009

California Business Bank offers a wide range of financial services to individuals, small and medium size businesses in Los Angeles, and the surrounding communities in Southern California. Our commitment is to deliver the highest quality financial services and products. We offer mobile banking and on-line account origination for our customers’ convenience. Please visit our web-page to open-up your personal account on line, or add mobile banking to your existing personal or business accounts.

Forward Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by the act. These forward-looking statements refer to the Company’s current expectations regarding future operating results, and growth in loans, deposits, and assets. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance, or achievements to differ materially from those expressed, suggested, or implied by the forward looking statements. These risks and uncertainties include, but are not limited to (1) the impact of changes in interest rates, a decline in economic conditions, and increased competition by financial service providers on the Company’s results of operation, (2) the Company’s ability to continue its internal growth rate, (3) the Company’s ability to build net interest spread, (4) the quality of the Company’s earning assets, and (5) governmental regulations.