CABB California Business Bank (CE)

California Business Bank (OTCBB:CABB) announced financial results today for the second quarter ended, June 30, 2008. For the second quarter of 2008, the after tax profit was $30,708, or 1.6 cents per share, compared with net profit of $197,000, or 10.7 cents per share for the same quarter last year. The 2008 year to date pre-tax profits was $164,632 and the after tax profits totaled $98,633, or 5.25 cents per share compared to $243,000, or 13.1 cents per share for same period last year. Highlights for the second quarter ended June 30, 2008 include: Total Assets increased by 26% or $27.7 million to $133.8 million compared to $106.1 at June 30, 2007; Loans outstanding increased $22.7 million to $92.1 million, or a 32.6% increase from $69.4 million at June 30, 2007; Deposits grew by 17.2% to $103.9 million from $88.7 million at June 30, 2007; The allowance for loan losses to total loan was 1.23%, compared with 1.26% at June 30, 2007; Return on average assets was 0.10%, compared to 0.80% for the second quarter of 2007. Return on average equity was 0.68%, compared to 4.66% for the second quarter of 2007. The Bank continued to be categorized as �well-capitalized� under the regulatory guidelines, with Tier 1 leverage capital ratio of 13.99%, Tier 1 risk-based capital ratio of 18.85%, and Total risk-based capital ratio of 20.09%. Mr. Wood, President and Chief Executive Officer, stated: �The financial system is facing a multitude of challenges resulting from the various stresses within the economy. More notably the conspicuous intensification of both oil and food prices, along with the complexities in the residential housing and new construction markets, have created anxiety and negatively impacted the banking industry. Further fueling the bonfire are the continuous pessimistic media reports regarding the health of financial institutions at a greater frequency than the weather. We have noted some strains within our very limited construction portfolio and our evaluation has denoted minimal exposure to the bank from the orderly resolution of these loans. Our stock price has been trading between $10.95 and $8.50 per share in small quantities and at June 30, 2008, the stock was trading around $10.40 per share. The bank continues to expand our non-interest bearing deposits and commercial loan relationships within our target markets. We expect to have our Inland Empire branch opened mid-third quarter and have anchored it with very seasoned commercial bankers. Their focus will be on our core business lines. Finally, we are looking at market opportunities for future expansion by acquiring additional branches, and/or human resources to achieve our strategic priorities. 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.