CABB California Business Bank (CE)

California Business Bank (OTCBB:CABB) announced today its fourth quarter 2007 net profit in the amount of $144,000, compared with net loss of ($67,000) in the fourth quarter of 2006. For the twelve months ended December 31, 2007, net profit was $569,000, or 30 cents per share, compared with net loss of ($1,209,000), or (66) cents per share for the prior year ended December 31, 2006. Mr. Charles Wood, President and Chief Executive Officer, stated, �The improvement in earnings resulted from solid loan and deposit growth while controlling human assets, and fixed overhead. The Bank will continue to invest in technology, delivery channels, and human resources to achieve our strategic objectives. Furthermore, we intend to expand our market footprint by establishing strategic locations to better serve our business deposit and relationships.� 2007 Year End Key Performance Highlights Total assets increased to $117.8 million, an increase of $32.7 million or 38% from the prior year ended December 31, 2006. Total loans outstanding grew to $83.7 million, up 57% or $30.2 million over the previous year. Total Deposit increased to $94.2 million, increased by 38% or $26.0 million over the previous year. Provision for loan losses was $346,000 for 2007 and allowance for loan losses to total loans was at 1.11%. Return on average asset was 0.54%, compared with (2.13%) for 2006. Return on equity was 3.32%, compared with (7.14%) for 2006. Net interest margin increased to 4.15%, compared with 3.90% for 2006. The Bank continued to be �well-capitalized� under regulatory guidelines with Tier 1 leverage capital ratio of 15.4%, Tier 1 risk based capital ratio of 18.9% and Total risk based capital ratio of 19.9%. Additionally, we are pleased to announce Ms. Jane Auerswald has joined our team as Executive Vice President and Chief Credit Officer. Jane has over 30 years of banking experience and over 15 years as Chief Credit Officer. 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.