California Business Bank Announces Raising $5 Million in New Capital

California Business Bank (CABB.OB) announced today that it has raised $5,060,505 in new capital prior to the June 30, 2011 quarter end. The tier 1 leverage ratio will be 10.0% for the second quarter and is anticipated to be over 13.0% for the third quarter. The Bank had a tier 1 leverage ratio of 8.3% until the new capital was raised.

Mr. Cole W. Minnick, Jr., President and Chief Executive Officer, stated, “The generation of the funds for this additional capital was a very lengthy and difficult process. The very hard work by our Chairman, Mr. Raffi D. Krikorian, throughout this process and the recent efforts of Mr. Steve Hong, Vice Chairman, made the difference. This new capital will provide the necessary funds for us to make a mark in the business community we serve. The Bank will be able to better address the need of its existing customers with the assistance of the new shareholders and be able to reach markets long targeted by the Bank in its calling program.”

The Bank is a full service commercial bank offering internet banking as well as remote deposit for its customers. The Bank offers DDA accounts as well as money market accounts on a tiered basis. The CD products are very competitive for the rates and terms. The loan products range from lines of credit to term loans that provide financing for the various conditions of a successful business. The Bank is located in downtown Los Angeles and has a branch in Rancho Cucamonga.

Mr. Krikorian stated, “It is well known today how challenging the current banking environment is to raise capital for a Southern California based community bank. Our success in raising these funds is a vote of confidence in CABB’s franchise, and its constituents.”

The Bank is required under a consent order from the Federal Deposit Insurance Corporation and the California Department of Financial Institutions to raise a minimum of $5 million and have a leverage capital level of at least 9.0%.

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.

California Business Bank (CE) (USOTC:CABB)
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