California Bank of Commerce BALANCE SHEET December 31, 2011 and 2010 2011 2010 ASSETS Cash and due from banks  $  46,962,082  $  4,458,291 Federal funds sold  - 5,765,000 Total cash and cash equivalents  46,962,082  10,223,291 Investment securities (Note 3) Available-for-sale, at estimated fair value  36,349,666  50,359,618 Loans held for sale (Note 1)  372,173  1,390,100 Loans, less allowance for loan losses of $4,175,000 in 2011 and $4,327,000 in 2010 (Notes 4, 5, 9 and 10)  203,572,096  170,073,533 Premises and equipment, net (Note 6)  319,749  275,343 Bank owned life insurance (BOLI)  4,939,253  1,358,019 Deferred taxes, net  2,704,410  3,178,397  Accrued interest receivable and other assets  3,325,821  2,824,933 Total assets $ 298,545,250  $ 239,683,234 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits: Noninterest bearing $  55,465,028  $  41,090,677 Interest bearing (Note 7)  188,438,362  142,525,987 Total deposits 243,903,390 183,616,664 Other borrowings (Note 9)  18,000,000  28,000,000 Accrued interest payable and other liabilities (Note 14)  1,998,984  1,107,938 Total liabilities 263,902,374  212,724,602 Commitments and contingencies (Note 10)  Shareholders’ equity (Notes 11 and 12): Preferred stock – no par value; 10,000,000 shares authorized Series A, noncumulative, $1,000 per share liquidation value, no shares issued or outstanding at  December 31, 2011; 4,000 shares issued and outstanding at December 31, 2010 (Note 16)   - 3,825,134 Series B, noncumulative, $1,000 per share liquidation value, no shares issued or outstanding at  December 31, 2011; 200 shares issued and outstanding at December 31, 2010 (Note 16)   - 193,970 Series C, noncumulative, $1,000 per share liquidation value, 11,000 shares issued and outstanding at December 31, 2011; no shares issued  and outstanding at December 31, 2010 (Note 16)   10,949,443 -  Common stock no par value; 40,000,000 shares authorized; 2,750,000 issued and outstanding in 2011 and 2010  30,056,339  29,804,008 Accumulated deficit  (6,581,703)  (7,034,399) Accumulated other comprehensive income,  net of taxes (Note 3)  218,797  169,919 Total shareholders’ equity 34,642,876  26,958,632 Total liabilities and shareholders’ equity  $ 298,545,250  $ 239,683,234 The accompanying notes are an integral part of these financial statements. 9