CMUV CMUV Bancorp (QB)

Community Valley Bank is pleased to announce its 16th consecutive quarter of profitability. For the quarter ending September 30th, CVB reported $220,000 in net profit. Operational profit year to date is $734,000. Including a $300,000 valuation allowance credit to taxes, year to date total net profit is $1,034,000.

Total assets as of September 30th stood at $113,968,000, total net loans were $83,176,000, and our Total Equity Capital was $12,785,000, providing an equity capital ratio of 11.30%. This is well above the regulatory ratio required to be considered a well capitalized bank.

Positive loan growth has been somewhat offset by unexpected early loan payoffs. We continue to see excellent loan growth through our SBA programs. CVB was proud to be the 6th rated bank for SBA volume in the San Diego-Imperial county region for the period through August 31, 2014. Our Allowance for Loan and Lease Losses ended the quarter at $1,280,000 or 1.51% of loans. Board and Management believe the ALLL is fully funded at this time.

As of September 30th, 2014, the stock price was $5.36 per share. Tangible book value of the common stock was $6.74 per share.

We thank all of you for continuing to be a part of Community Valley bank. This month we celebrate our 7th anniversary and we are extremely grateful for those of you who have been with us from the very beginning. It certainly has been a bumpy ride but we are confident that the bank is, and will continue to move in a positive direction. Know that both your CVB Board and Management will provide our very best to deliver value to you our shareholders.

To that end, we take great pleasure in announcing that we have received regulatory approval to open our 3rd CVB branch. The branch is expected to open in the 1st quarter of 2015, in Palm Desert, CA. Our Palm Desert Loan Production office has been very beneficial to CVB over the last couple of years. We recognize that by opening a full service branch, we may further enhance relationships with our many loan customers in the Coachella Valley.

      September December September Consolidated Financial Condition Data 2014 2013 2013 Assets Loans receivable - net $ 83,176,000 $ 73,703,000 $ 72,326,000 Cash and cash equivalents 21,934,000 35,037,000 31,163,000 Investment Securities 1,270,000 1,466,000 1,771,000 Federal Home Loan Bank Stock 392,000 447,000 450,000 Other Assets 7,196,000 6,950,000 6,588,000 Total Assets $ 113,968,000   $ 117,603,000   $ 112,298,000   Liabilities Deposits 92,796,000 98,164,000 93,378,000 Borrowings (FHLB) 7,500,000 6,000,000 6,000,000 Mortgage Indebtedness 538,000 684,000 699,000 Other Liabilities 349,000 464,000 490,000 Total Liabilities 101,183,000   105,312,000   100,567,000   Preferred Stock 1,800,000 2,400,000 2,400,000 Common Stock 14,316,000 14,298,000 14,287,000 Costs/Dividends (10,500 ) (100,000 ) (94,000 ) Surplus 544,000 537,000 516,000 Total Undivided Profits $ (3,801,500 ) $ (4,727,000 ) $ (5,266,000 ) Unrealized Gain/Loss (63,000 ) (117,000 ) (112,000 ) Stockholder's Equity - net 12,785,000 12,291,000 11,731,000 Total Liabilites and Shareholder Equity $ 113,968,000   $ 117,603,000   112,298,000     September December September Selected Consolidated Earnings Data 2014 2013 2013 Total interest income and fees $ 4,080,000 $ 5,420,000 $ 3,977,000 Total interest expense (474,000 ) (712,000 ) (534,000 ) Net interest income 3,606,000 4,708,000 3,443,000 Provision of losses on loans (143,000 ) (615,000 ) (615,000 ) Net interest income after provision for losses on loans 3,463,000 4,093,000 2,828,000 Total other income (Noninterest income) 355,000 910,000 938,000 General administrative and other expenses (3,084,000 ) (4,163,000 ) (3,066,000 ) Income tax expense (benefit) 300,000   400,000   0   Net Profit/Loss $ 1,034,000   $ 1,240,000   $ 700,000  

Community Valley BankJon A. Edney, President and CEO(760) 352-1889mediarelations@yourcvb.com