Jul 29, 2010, 12:26pm

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County Commerce Bank, the only community bank headquartered in Ventura and Santa Barbara County, today reported continued growth during the second quarter of 2010. Capital increased to $572,000, from $13,204,000 to $13,776,000, an 8.66% (annualized) increase in investor’s equity for the first six months of 2010. The bank’s excellent liquidity position enabled it to continue to invest in the local community it serves and support the economy through loans to small and medium size businesses. Assets were at relatively the same level, $160,346,000 at year-end 2009 and $159,513,000 at June 30, 2010. The loan portfolio grew to $100,366,000; a $3,773,000 or 3.91% increase for the six month period.

“The Bank is successfully managing a strong and healthy balance sheet despite the economic downturn. The bank’s loan portfolio quality has and continues to be strong even in light of the overall impact of the economy on the banking community,” said Joseph Kreutz, President and Chief Executive Officer. One non-performing loan of $42,000 was reported; which is a fully guaranteed loan and the bank anticipates collecting the balance in full. The bank only reported one past due loan of $1,000,000 and is diligently pursuing collection of this past due credit. As an abundance of caution, the bank’s loan loss reserve remains high at 2.12% of total disbursed loans. The bank has no sub-prime real estate loans or residential tract development loans.

The bank reported an increase in net income for the second quarter; net income after taxes was $290,000, equal to $0.27 per share and a total of $560,000 or $0.52 per share for the first six months of 2010. Net income year to date was up by $43,000 or 8.32% compared to year to date 2009, largely due to an increase in net interest income. The bank’s net interest margin also increased to 4.20% compared to 3.98%. The bank’s return on equity continues to remain strong at an annualized rate of 8.20%.

Mr. Kreutz, stated, “I am very pleased that the bank continues its solid earnings performance. The bank’s reputation is excellent and our customer base continues to grow as word spreads about the exceptional service enjoyed by our existing customers.” Kreutz added, “Measured against its peers, the bank continues to be the leader of its class. County Commerce Bank is the top rated bank of all banks headquartered in Ventura and Santa Barbara Counties according to D.A. Davidson Co. and is the only community bank in the area to earn the Five Star ‘Superior’ award by Bauer Financial for 21 consecutive quarters.”

About County Commerce Bank

County Commerce Bank was founded by local professionals and business leaders in Ventura County. Headquartered in the City of Ventura at 3260 Telegraph Road (one block west of Mills), with a second location in Oxnard at 2400 East Gonzales Road, County Commerce Bank assists local professionals and small businesses, offering its customers a banking relationship of trust, security and sound business practices. Leading edge technology services are offered, including Internet Banking, Bill Pay and Remote Deposit Capture. The Bank's web site is www.CountyCommerceBank.com.

County Commerce Bank completed its initial public offering of stock on January 21, 2003 and opened for business in Ventura, California on February 13, 2003. County Commerce Bank opened its second Branch located in Oxnard on April 30, 2007. County Commerce Bank stock is traded on the Over the Counter Bulletin Board (OTCBB) and our Ticker Symbol is CNYB.

County Commerce Bank’s stock is traded through Market Maker:

Michael R. Natzic,
Senior Vice President/Branch Manager
Community Bank Group
Stone & Youngberg LLC
Member FINRA – Member SIPC
P.O. Box 1688
Big Bear Lake, CA 92315
(800) 288-2811
(909) 584-4500

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States government, and general economic conditions.

Selected Financial Data
Unaudited		Six months ended June 30,
			2010				2009
Income statement summary
Net interest income		$	3,129,000			$	2,652,000
Noninterest income			142,000				120,000
Noninterest expense			2,119,000				1,728,000
Provision for loan losses			200,000				165,000
Income before income tax			952,000				879,000
Income tax			392,000				362,000
Net income		$	560,000			$	517,000
Balance sheet summary
Loans		$	100,366,000			$	93,047,000
Allowance for loan losses			2,130,000				1,415,000
Deposits			139,921,000				129,803,000
Stockholders' equity			13,776,000				12,687,000
Total assets			159,513,000				145,241,000
Common stockholders' data
Basic earnings per share (annualized)		$	1.04			$	0.96
Book value per share		$	12.78			$	11.77
Capital ratios
Tier 1 leverage ratio			8.66	%			8.60	%
Tier 1 risk-based capital ratio			13.07	%			11.59	%
Total risk-based capital ratio			14.34	%			12.85	%
Equity to assets			8.64	%			8.74	%
Financial ratios
Return on average assets (annualized)			0.70	%			0.70	%
Return on average equity (annualized)			8.20	%			8.27	%
Efficiency ratio			63.72	%			59.38	%
Net interest margin			4.20	%			3.98	%
Asset Quality
Nonaccrual loans			42,000				0
Past due 90 days and still accruing			0				0
Past due 30 through 89 days and still accruing			1,000,000				0
Charge-off			5,000				0