CMUV CMUV Bancorp (QB)

Community Valley Bank (CVB) is pleased to announce that Wayne Gale has joined CVB as its new President and CEO. Wayne has strong industry experience, most recently at The Foothills Bank in Yuma, AZ. During six years at the helm, The Foothills Bank ranked four times as the number one bank in Arizona.

CVB’s 3rd quarter profit of $252,000 marked its 12th consecutive quarter of profitability. Year to date net profit for 2013 was $700,000. This exceeds the bank’s net profit for the entire year of 2012 by 9%.

As of September 30, 2013 total assets grew by $8 million in the third quarter ending at $112 million. Loans grew by $3 million and ended the quarter at $74 million. Deposits grew to $93 million, an increase of $7 million during the 3rd quarter. Total Equity Capital was $11.7 million resulting in a Tier 1 capital ratio of 10.96%. This is well above the regulatory ratio requirements to be considered a well capitalized bank. On October 16, 2013 Community Valley Bank stock (CMVU), traded at $4.70 per share, up from $4.51 as of June 30th.

The Allowance for Loan and Lease Losses (ALLL) as of September 30th was $1.69 million or 2.29% of total loans. Based on the 3rd quarter ALLL analysis, Board and Management believe it is fully funded. The bank’s ALLL ratio exceeds our peer bank average and provides a strong reserve against potential future losses.

CVB is completing its sixth year serving the financial needs of the Imperial and Coachella Valleys. Management is pleased with the progress made in that time and excited about the bank’s potential future. In addition there is optimism that recent improvement in the economy will continue to enhance CVB’s ability to grow and increase profitability. Recent news that interest rates will rise in the next year to 18 months will require CVB to closely monitor the local economies and to examine alternative strategies going forward.

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.

September 30, 2013 December 31, 2012 September 30, 2012 Consolidated Financial Condition Data Assets Loans receivable - net $ 72,326,000 $ 79,195,000 $ 74,194,000 Cash and cash equivalents 31,163,000 21,628,000 12,445,000 Investment Securities 1,771,000 1,003,000 1,215,000 Federal Home Loan Bank Stock 450,000 283,000 343,000 Other Assets 6,588,000 6,565,000 7,030,000 Total Assets $ 112,298,000   $ 108,674,000   $ 95,227,000   Liabilities Deposits 93,378,000 90,340,000 83,291,000 Borrowings (FHLB) 6,000,000 6,000,000 0 Mortgage Indebtedness 699,000 744,000 759,000 Other Liabilities 490,000 446,000 326,000 Total Liabilities 100,567,000   97,530,000   84,376,000   Preferred Stock 2,400,000 2,400,000 2,400,000 Common Stock 14,287,000 14,271,000 14,271,000 Costs/Dividends (94,000 ) (38,000 ) 0 Surplus 516,000 498,000 497,000 Total Undivided Profits $ (5,266,000 ) $ (6,004,000 ) $ (6,331,000 ) Unrealized Gain/Loss (112,000 ) 17,000 14,000 Stockholder's Equity - net 11,731,000 11,144,000 10,851,000 Total Liabilities and Shareholder Equity $ 112,298,000   $ 108,674,000   $ 95,227,000     September 30, 2013 December 31, 2012 September 30, 2012 Selected Consolidated Earnings Data Total interest income and fees $ 3,977,000 $ 4,665,000 $ 3,328,000 Total interest expense (534,000 ) (681,000 ) (505,000 ) Net interest income 3,443,000 3,984,000 2,823,000 Provision of losses on loans (615,000 ) (540,000 ) (170,000 ) Net interest income after provision for losses on loans 2,828,000 3,444,000 2,653,000 Total other income (Noninterest income) 938,000 961,000 480,000 General administrative and other expenses (3,066,000 ) (3,784,000 ) (2,806,000 ) Income tax expense (benefit) 0   (5,000 ) 0   Net Profit/Loss $ 700,000   $ 621,000   $ 327,000  

Community Valley BankWayne D. Gale, President and CEO(760) 352-1889mediarelations@yourcvb.com