CABB California Business Bank (CE)

California Business Bank (OTCBB:CABB) announced today its first quarter 2008 profit after taxes in the amount of $67,925, or 3.6 cents per share, compared with net profit of $45,460, or 2.5 cents per share in the first quarter of 2007. The bank began paying income taxes in the first quarter 2008 after fully utilized our prior year net operating loss carryover in 2007. This earnings improvement is a result of business growth and use of technology on leveraging human resources. Highlights for the first quarter 2008 include: Total Assets increased $34 million to $128.4 million, or 36% growth from $94.3 million at March 31, 2007, and increased 9% from $117.8 million at December 31, 2007. Loans outstanding increased $24.3 million to $88.5 million, or 37.8% increase from $64.2 million at March 31, 2007, and increased 5.7% from $83.7 million at December 31, 2007. Deposits grew by 22.8% to $94.8 million from $77.2 million at March 31, 2007, and grew 0.6% from $94.2 million at December 31, 2007. Provision for loan losses was $50,000, with allowance for loan losses to total loans at 1.28%. Return on average assets was 0.22%, compared to 0.20% for the first quarter of 2007. Return on average equity was 1.5%, compared to 1.09% for the first quarter of 2007. Net interest margin at 3.60%, decreased 63 basis points from 4.23% of the same quarter 2007. The Bank continued to be categorized as �well-capitalized� under the regulatory guidelines, with Tier 1 leverage capital ratio of 14.5%, Tier 1 risk-based capital ratio of 18.1%, and Total risk-based capital ratio of 19.3%. Mr. Charles Wood, President and Chief Executive Officer, stated, �We are particularly pleased by our continued positive growth trends with five consecutive quarters of profitability. Our asset quality and loan performance remain solid, notwithstanding some strains in construction loans portfolio which constitutes approximately 17 percent of total loans. We have had no non-performing assets since the Bank opened in November 2005. �Like most community banks, we have been negatively impacted by the economic slowdown and the 175 basis points rates cuts by the Federal Reserve since January 2008. As a result, our deposits growth has been stagnant and net interest margin decreased. During the first quarter, our stock price has been trading between $10.95 and $8.50 per share in small quantities. The recent drop in stock price was mainly due to the current market volatility and economic conditions. �The Bank will continue to achieve organic growth mainly in the core commercial and industrial loans and deposits areas. We will focus on our strategic priorities in continued developing non-interest bearing deposit accounts and commercial loan relationships in our target market. Moreover, we are developing an ebanking product for consumers which will be launched later this year. The product will allow consumers to open accounts on-line, sign up for mobile banking, bill pay, debit cards, overdraft lines and credit cards. We will also be expanding our footprint by establishing ATM network.� 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 to our customers. 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.