Community Bank of Santa Maria

President's Desk
James D. Glines, President and Chief Executive Officer

August 4, 2010

SANTA MARIA, CA – Community Bank of Santa Maria continues to meet and exceed federal guidelines for a “well-capitalized” institution, according to the bank’s second quarter earnings report, which was recently released.

Bank President Jim Glines notes that the Tier 1 Capital Ratio was 10.09% at June 30, 2010, which is more than twice the regulatory minimum. Glines adds “Our continued growth reflects the faith that the people of the communities we serve have in our bank. We believe that they appreciate our ‘Santa Maria Style Banking’ and they realize they can visit any of our offices and speak directly to a decision maker. These folks appreciate the fact that we are a ‘Main Street’ Bank; not a ‘Wall Street’ Bank!”

At quarter-end June 30, 2010 deposits were $129.6 million. This is a 9% increase over the period ending June 30, 2009, when deposits were $118.9 million. Net Loans at June 30, 2010 were $112.9 million, which is a 1% increase over the $111.6 million reported at June 30, 2009. Total Assets of the bank at June 30, 2010 were $144.4 million, up 7% from the $135.1 million reported at June 30, 2009.

At June 30, 2010 the bank had year-to-date Loan Loss Reserve Expense of $1.5 million. This compares to $1.1 million at June 30, 2009. This resulted in a year-to-date net loss at June 30, 2010 of $519,052, versus a net loss of $393,722 at June 30, 2009.

The bank increased net interest income and net interest margin by 5.3% and 1.6%, respectively, from period ending June 30, 2009 to period ending June 30, 2010. “This provided the bank the ability to offset much of the expense required to increase Loan Loss Reserves and provide an adequate cushion in an uncertain economy” said Glines.

Community Bank of Santa Maria opened for business on March 1, 2001 and employs over 50 central coast residents at their three branches in Santa Maria, Oak Knolls and Lompoc. For more information about Community Bank of Santa Maria, please visit www.yourcbsm.com or contact Jim Glines or Janet Silveria at 805.922.2900 or at info@yourcbsm.com.

Community Bank of Santa Maria is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2010, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.

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