Commonwealth Business Bank Reports Third Quarter Net Income of $483,000

Operating Results

Net interest income for the third quarter of 2007 increased by $822,000 to $2.47 million when compared to the same period in 2006. This improvement was a result of the net interest margin increasing by 0.36 percent to 4.30 percent. The net interest income increased by $70,000, or 2.9 percent, when compared with the previous quarter.

Non-interest income grew by $310,000, or 220 percent, to $451,000, compared with the third quarter of 2006, mainly due to an increase in service fees on deposit accounts and other income. Non-interest income improved by $37,000, or 8.9 percent, during the quarter.

When compared to a year ago, non-interest expense increased by $487,000, or 37.9 percent, to $1.77 million. This overall increase in expenses is in line with the overall growth experienced by the bank. Net income before taxes increased by $459,000 to $887,000 after provision for loan losses of $263,000. Net income for the quarter ended September 30, 2007 totaled $483,000, or $0.15 per diluted share, compared with $214,000, or $0.08 per diluted share, for the corresponding period in 2006, and $191,000, or $0.06 per diluted share, for the second quarter in 2007.

Return on average assets and return on average equity improved to 0.81% and 4.74%, respectively, for the third quarter ended September 30, 2007. These returns compared favorably with 0.50% and 3.06%, respectively, for the comparable period in 2006 as well as the ROA and ROE of 0.35% and 1.89%, respectively, for the second quarter in 2007.

Balance Sheet Summary

As of September 30, 2007, total loans grew by 55.2 percent, or $65.7 million, to $184.8 million from $119.1 million at the end of the third quarter of 2006. This represents an increase of 12.4 percent, or $20.4 million, from $164.4 million at the end of the second quarter of 2007. The Bank’s commercial real estate concentration continued to decline. Commercial real estate loans still accounted for the largest percentage of the total loan portfolio at 54.4 percent of the total loans, compared with 66.5 percent one year ago and 56.6 percent at the end of the second quarter, 2007. The concentration of commercial and industrial loans increased to 43.6 percent, compared with 30.5 percent a year ago and 41.4 percent at the end of the previous quarter.

No non-performing loans were recorded during the third quarter. As of September 30, 2007, the allowance for loan losses increased to $2.34 million, or 1.26 percent of gross loans, compared with $1.41 million, or 1.18 percent of gross loan, at the end of the third quarter 2006 and $2.07 million, or 1.26 percent of gross loan, at the end of the second quarter, 2007. The Bank continued to maintain strong asset quality.

Total deposits were $217.5 million at September 30, 2007, compared with $140.2 million a year ago and $185.1 million at the previous quarter end. At the quarter end, $20 million of temporary deposit was included in total deposits. When compared to the previous quarter, the largest growth came from demand deposits, money market and jumbo CD accounts. Demand deposits increased by 89 percent, or $22 million (7.9 percent, or $2 million after adjusted for the temporary deposit); money market account increased by 13.6 percent, or $4.9 million; and jumbo CD accounts increased by 9.7 percent, or $8.7 million. Since September 30, 2006, the largest percent growth came from demand deposits and non-jumbo certificate of deposit accounts.

Shareholders’ equity increased by $3.4 million to $41.0 million from a year ago and by $0.8 million since the second quarter-end 2007. The Bank continued to be “well-capitalized” under all regulatory categories.

“I am pleased with the strong and steady progress in the third quarter despite the global and local weakness in the financial markets. I expect that the banking environment is likely to become more turbulent, putting more hardship on us. Though the recent interest rate cuts may alleviate the payment burden of borrowers, we will be impacted by the interest rate risk posed by our asset sensitive structure. We will make all-out efforts to overcome these challenges through proactive risk management,” commented Wun Hwa (Jack) Choi, President and CEO.

Choi added: “We signed a definitive agreement with Hana Financial Group of Korea in October to sell newly issued shares of the Bank’s common stock that will represent 37.5% of the outstanding shares of the Bank immediately following the closing of the transaction. The proposed transaction is subject to all necessary regulatory approvals. The strategic alliance with a reputable financial giant of Korea will bring great opportunities to expand our business. With the alliance of the strong financial and organizational resources of Hana Financial Group and our Bank’s proven excellent business model, we are well prepared not only to lead the banking industry in our community but compete in the national market as well. In October, we also signed a lease for our third full-service branch in Irvine, California. We expect to open the branch in early part of 2008.”

The Bank’s Call Reports are available for review or download directly from the FDIC website at , or through the link at the Bank’s website at .

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and factors such as: (1) the impact of changes in interest rates, (2) fluctuation in economic conditions, (3) competition in the Company’s defined market, (4) the Company’s ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.