CMUV CMUV Bancorp (QB)

Community Valley Bank (CVB) recently completed the most profitable 6 month period in its history. Second quarter results added $244,000 in profits contributing to a ytd profit of $448,000 for the first six months of 2013. The 2013 second quarter profit was the bank’s 11th consecutive quarter of profitability.

On June 30, 2013, total assets were $104 million, total loans $71 million with total deposits of $85 million. Total equity capital was $11.6 million. The allowance for loan and lease losses approached $1.6 million, just over 2% of gross loans. The book value of the bank’s common stock (CMUV) is $5.65 with a market value at the time of $4.51. CVB tier one leverage capital ratio was 11.10% exceeding the regulatory ratio required to be designated as a well capitalized bank.

Community Valley Bank conveys best wishes to founding CEO and President, Robert E. Hahn on his recent retirement. CVB’s Board of Directors is actively engaged in recruiting a new permanent CEO/President. They are confident their search will result in hiring a dynamic and energetic leader to continue CVB’s growth and profitability.

This was an excellent start to the year, strongly positioning the bank for the remainder of 2013. Obtaining quality loan growth to meet acceptable underwriting standards is a priority. With anticipated change in the interest rate environment, appropriate strategies to further enhance bank profitability and shareholder value are under discussion. CVB remains committed to being the business bank for the Imperial and Coachella valleys.

About Community Valley Bank: Community Valley Bank (www.yourcvb.com) is the Imperial Valley’s ONLY locally owned and locally headquartered bank. CVB was chartered as a state bank for Imperial Valley businesses on October 1, 2007, and now has three locations, all in California: 1443 Main Street in El Centro, 310 Main Street in Brawley, and 77564 Building A Country Club Drive, Suite 103, in Palm Desert. Community Valley Bank is a publicly traded company under the symbol CMUV. All investor related inquiries should be directed to Community Valley Bank’s Chief Financial Officer, Toni Umphreyville at (760) 352-1889.

June 30, 2013

December 31, 2012

June 30, 2012

Consolidated Financial Condition Data Assets Loans receivable - net $ 69,688,000 $ 79,195,000 $ 60,917,000 Cash and cash equivalents 28,064,000 21,628,000 22,654,000 Investment Securities 787,000 1,003,000 1,908,000 Federal Home Loan Bank Stock 447,000 283,000 283,000 Other Assets 5,463,000 6,565,000 5,499,000 Total Assets $ 104,449,000   $ 108,674,000   $ 91,261,000   Liabilities Deposits 85,855,000 90,340,000 79,486,000 Borrowings (FHLB) 6,000,000 6,000,000 0 Mortgage Indebtedness 714,000 744,000 772,000 Other Liabilities 289,000 446,000 276,000 Total Liabilities 92,858,000   97,530,000   80,534,000   Preferred Stock 2,400,000 2,400,000 2,400,000 Common Stock 14,287,000 14,271,000 14,267,000 Costs/Dividends (57,000 ) (38,000 ) (6,000 ) Surplus 503,000 498,000 496,000 Total Undivided Profits (5,550,000 ) (6,004,000 ) (6,453,000 ) Unrealized Gain/Loss 8,000 17,000 23,000 Stockholder's Equity - net 11,591,000 11,144,000 10,727,000

Total Liabilities and Shareholder Equity

$ 104,449,000   $ 108,674,000   $ 91,261,000    

June 30, 2013

December 31, 2012

June 30, 2012

Selected Consolidated Earnings Data Total interest income and fees $ 2,627,000 $ 4,665,000 $ 2,126,924 Total interest expense (346,000 ) (681,000 ) (328,939 ) Net interest income 2,281,000 3,984,000 1,797,985 Provision of losses on loans (525,000 ) (540,000 ) (170,000 ) Net interest income after provision for losses on loans 1,756,000 3,444,000 1,627,985 Total other income (Noninterest income) 741,000 961,000 434,432 General administrative and other expenses (2,049,000 ) (3,784,000 ) (1,894,756 ) Income tax expense (benefit) 0   (5,000 ) 0   Net Profit/Loss $ 448,000   $ 621,000   $ 167,661