Community Bank Reports Financial Results for 2017; The Impact of the TCJA; and a $0.50 Per Share Dividend

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1 FOR IMMEDIATE RELEASE January 26, 2018 For additional information contact: J. Duncan Smith, Chief Financial Officer at (626) Community Bank Reports Financial Results for 2017; The Impact of the TCJA; and a $0.50 Per Share Dividend PASADENA, Calif., January 26, Community Bank (CYHT- OTC( Bank )), founded in 1945, is an independent Southern California regional community bank, with assets of $3.7 billion, and headquartered in Pasadena with 16 business centers. Impact of Tax Cuts and Jobs Act (TCJA): Community Bank recorded a $6.8 million or $1.95 per share one-time non-cash charge in the fourth quarter of 2017 as a result of the recently enacted TCJA. This charge results solely from the revaluation of our deferred tax assets. Based on information presently available, the Bank anticipates its Federal and state statutory income tax rate for 2018 and beyond to decline from approximately 42.1% to 29.6%. Financial highlights: Net income was $26.7 million in 2017 compared with $26.8 million in The decrease in net income during 2017 of $99 thousand was primarily due to a $3.4 million decrease in gain on loan sales, a $1.8 million 2016 gain on the sale of OREO that did not recur in 2017, the $6.8 million non-cash charge discussed above offset by a $4.5 million release in the provision for loan losses. Diluted earnings per share in 2017 were $8.52 compared with $8.57 in Net income before effect of the tax rate change was $33.5 million in the year ended December 31, 2017, an increase of $6.7 million or 24.9% over the same period last year. The increase in net income before the effect of the tax rate change during 2017 of $6.7 million resulted primarily from an increase in net interest income of $4.2 million and a $4.5 million release in the provision for loan losses during the year. These increases were partially offset by a $3.9 million decrease in non-interest income. Diluted earnings per share before the effect of the tax rate change were $10.68 compared with $8.57 in The increase in net interest income of $4.2 million was primarily the result of $99 million of average loan growth and slightly higher yields on loans driven by Fed rate increases and collections of past due loan interest, partially offset by increased funding costs. The $3.9 million decrease in non-interest income was primarily the result of lower loan sale revenue in 2017 and a large OREO property gain on sale in 2016, partially offset by smaller other amounts. Net interest margin increased to 3.35% from 3.31% in the same period due to the above plus growth in non-interest bearing deposits. Total loan balances at December 31, 2017 were a record $2.740 billion, representing a $245.4 million or 9.8% increase from the $2.495 billion at December 31, The Bank believes this growth reflects continued strong focus on origination of high quality loans in the greater Los Angeles area, primarily real estate and SBA loans. During the 3rd quarter of 2017, an impaired loan of $5.4 million with a related charge off of $4.5 million was paid in full, resulting in a recovery of $4.5 million and past due interest of $711 thousand. This recovery, along with the pay-off of approximately $30 million of substandard loans in Q , were the primary drivers behind the 2017 YTD reserve release of $4.5 million. Loan credit quality continues to improve as criticized loan totals decreased from $66.2 million at December 31, 2016 to $17.1 million at December 31, Non-performing assets at December 31, 2017 were $9.9 million compared to $19.2 million at the end of The allowance for loan losses decreased to 1.29% at December 31, 2017 compared to 1.41% at December 31, 2016, reflecting overall improvement in credit quality. The coverage ratio related to non-performing loans at December 31, 2017 was 391% compared to 217% at the end of Deposits grew to a total of $2.860 billion as of December 31, 2017, an increase of $178.2 million or 6.6% from December 31, ) See Non-GAAP measures disclosure below

2 Non-interest bearing deposits increased 12.4%, or $130.2 million to $1.177 billion at December 31, 2017 compared to $1.047 billion as of December 31, 2016, in part due to a Bank wide focus on increasing deposits throughout the branch system and the Bank s specialty deposit group. Average non-interest bearing deposits grew $124.8 million or 12.4% during 2017 over the prior year. Non-interest bearing deposits as a percentage of core deposits were 47.9% and at December 31, 2017, up from 45.6% at December 31, Non-interest bearing deposits as a percentage of total deposits were 41.2% compared to 39.0% at the prior year end. Details of changes in non-interest income and non-interest expenses are provided in the financial reports attached to the document including a reduction in loan sales of $3.4 million, an increase in salary related expenses of $2.8 million, an increase in deferral of loan origination costs of $2.9 million and an increase in professional services of $1.9 million during 2017 as compared to Community Bank s capital ratios continue to exceed well capitalized regulatory requirements The Kroll Bond Rating Agency (KBRA) affirmed Community Banks ratings as follows as of December 31, 2017: Type Rating Outlook Action Deposit BBB+ Stable Affirmed Senior Unsecured Debt BBB+ Stable Affirmed Subordinated Debt BBB+ Stable Affirmed Short-term Deposit K2 N/A Affirmed Short-term Debt K2 N/A Affirmed Dividend: The Board of Directors declared a $0.50 per share cash dividend (aggregating $1.6 million) on its outstanding common stock for common shareholders of record as of February 12, 2018 and payable on or about March 1, This represents the thirteenth consecutive quarter that the Bank has declared a dividend since introducing a formal dividend practice. The dividend was approved at the regularly scheduled Board of Directors meeting held on January 25, Provisional Estimate: The $6.8 million charge for deferred tax assets is a provisional estimate that could change as the Bank anticipates subsequent regulations and interpretations to be released associated with TCJA that will provide additional guidance on the application of the law; it is anticipated that the provisional estimate will be finalized by March 31, 2018, but could take up to 12 months. Non-GAAP Financial Measures: The Bank believes the presentation of net income before the effect of tax rate change, and the effect of the tax rate change which are both non-gaap financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of the operations and financial condition of the Bank. See the Statement on Non-GAAP measures and related table later in this document for additional disclosures and reconciliations. Market Makers CBank is pleased to include the following as market makers in Community Bank stock. Community Bank stock trades on OTC pink sheets under the ticket of CYHT. Contact information for our market makers is as follows: Raymond James & Associates D.A. Davidson & Co. John T. Cavender, SVP Financial Institutions Michael R. Natzic, Senior Vice President John.cavender@raymondjames.com mnatzic@dadco.com Keefe Bruyette & Woods, a Stifel Company Sandler O Neill + Partners, L.P. Cathy Bellina, Equity Trader Tom Thurston, Principal cbellina@kbw.com tthurston@sandleroneill.com Wedbush Securities Joey Warmenhoven, Managing Director Community Banking Group Joey.warmenhoven@wedbush.com

3 Community Bank, partnering to be YOUR community bank, has offices in Anaheim, Burbank, Century City, Commerce, Corona, Glendale, Huntington Beach, Irvine, Laguna Niguel, Ontario, Pasadena, Redlands, Santa Clarita, Santa Fe Springs, South Bay, and Woodland Hills. For more information, visit the Community Bank Website at This document may contain forward-looking statements concerning projections of revenues, income/loss, earnings/loss per share, capital expenditures, dividends, capital structure, or other financial items, plans and objectives of management for future operations, future economic performance, or any of the assumptions underlying or relating to any of the foregoing. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and may include the words "believes," "plans," "expects," "anticipates," "forecasts," "intends," "hopes," "should," "estimates," or words of similar meaning. While the Bank believes that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from projections for a variety of reasons, to include, but not limited to: the effect of, and our failure to comply with any regulatory orders we are or may become subject to; adverse economic conditions in California; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; the impact of local, national, and international economies and events (including political events, acts of war or terrorism, natural disasters such as wildfires and earthquakes) on the Bank's business; deterioration or malaise in economic conditions, including destabilizing factors in the financial industry and deterioration of the real estate market, as well as the impact from any declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; the impact of regulatory action on the Bank and legislation affecting the financial services industry; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the Dodd-Frank Wall Street Reform and Consumer Protection Act, other regulatory reform, and any related rules and regulations on our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings or regulatory or other governmental inquiries and proceedings and the resolution thereof, and the results of regulatory examinations or reviews; changes in our business plan; the effect of the Tax Cuts and Jobs Act; the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate,securities market and monetary fluctuations; changes in consumer spending, borrowings and savings habits; technological changes and developments; changes in the competitive environment among financial holding companies and other financial service providers, including fintech businesses; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; changes in our capital position; our ability to attract and retain skilled executives and employees; changes in our organization, compensation and benefit plans; and our success at managing the risks involved in any of the foregoing items.

4 COMMUNITY BANK - FINANCIAL HIGHLIGHTS (Unaudited) (Amounts in Thousands, except shares and per share data) As of December 31, December 31, Dollar Percent BALANCE SHEET Change Change Cash and cash equivalents $ 47,552 $ 44,298 $ (3,254) (6.8%) Investments 913, ,415 (76,366) (8.4%) FHLB Stock 17,250 17, Non-owner occupied real estate loans 823, ,714 96, % Owner occupied real estate loans 1,078,652 1,191, , % Total real estate loans 1,902,273 2,111, , % Commercial & industrial loans 545, ,462 45, % Other loans 46,902 37,926 (8,976) (19.1%) Total loans 2,494,507 2,739, , % Loan loss reserve (35,166) (35,346) (180) (0.5%) Net loans 2,459,341 2,704, , % Other assets 147, ,922 (3,113) (2.1%) Total assets $ 3,584,959 $ 3,747,398 $ 162, % Earning assets $ 3,440,426 $ 3,606,816 $ 166, % Non-interest bearing deposits $ 1,047,221 $ 1,177,453 $ 130, % Interest bearing deposits 1,634,773 1,682,761 47, % Total deposits 2,681,994 2,860, , % Borrowings - short term 228, ,500 (30,500) (13.4%) Borrowings - long term 315, ,000 (10,000) (3.2%) Other liabilities 32,256 32, % Total liabilities 3,257,250 3,394, , % Stockholders' equity 327, ,410 24, % Total liabilities & stockholders'equity $ 3,584,959 $ 3,747,398 $ 162, % Shares outstanding 3,128,266 3,134,095 December 31, CAPITAL RATIOS Minimum Ratios for a Well-Capitalized Bank Tier 1 leverage capital 9.36% 9.43% 5.00 % Tier 1 risk-based capital 10.88% 10.91% 8.00 % Total risk-based capital 12.08% 12.04% % Common equity tier 1 capital 10.88% 10.91% 6.50 %

5 For the Quarters Ended For the Year Ended December 31, December 31, Dollar Percent Dollar Percent INCOME STATEMENT Change Change Change Change Interest income $ 31,976 $ 35,126 $ 3, % $ 128,384 $ 136,078 $ 7, % Interest expense 3,488 4, % 13,357 16,840 3, % Net interest income 28,488 30,726 2, % 115, ,238 4, % Provision for loan losses 3, (3,394) (97.0%) 6,948 (4,496) (11,444) (164.7%) Net interest income after provision 24,990 30,622 5, % 108, ,734 15, % Non-interest income 1,972 1,903 (69) (3.5%) 13,307 9,378 (3,929) (29.5%) Non-interest expense 20,537 21, % 78,328 78, % Income before income tax 6,425 11,402 4, % 43,058 54,225 11, % Income tax 2,197 10,960 8, % 16,235 27,501 11, % Net income $ 4,228 $ 442 $ (3,786) (89.5%) $ 26,823 $ 26,724 $ (99) (0.4%) For the Quarters Ended For the Year Ended December 31, December 31, Selected Financial Data and Highlights Return on average equity 5.01% 0.49% 8.07% 7.71% Return on average equity before effect of tax rate change 1) 5.01% 8.00% 8.07% 9.66% Return on average assets 0.47% 0.05% 0.74% 0.72% Return on average assets before effect of tax rate change 1) 0.47% 0.76% 0.74% 0.91% Earning Asset Yields 3.73% 3.84% 3.70% 3.82% Cost of Funds 0.40% 0.48% 0.39% 0.47% Net interest margin 3.33% 3.36% 3.31% 3.35% Efficiency ratio 67.42% 64.85% 61.07% 61.40% Book value per common share $ $ Basic earnings per common share $ 1.35 $ 0.14 $ 8.57 $ 8.53 Earnings per share - basic before effect of tax rate change 1) $ 1.35 $ 2.30 $ 8.57 $ Diluted earnings per common share $ 1.35 $ 0.14 $ 8.57 $ 8.52 Diluted earnings per common before effect of tax rate change 1) $ 1.35 $ 2.29 $ 8.57 $ Weighted average shares outstanding - basic 3,128,266 3,134,095 3,128,266 3,133,472 Weighted average shares outstanding - dilutive 3,128,609 3,143,534 3,128,350 3,136,431 Dividend declared $ 0.50 $ 0.50 $ 2.00 $ ) See Statement of non-gaap measures at the end of this document

6 For the Year Ended December 31, Interest income Loans $ 106,463 $ 114,938 Securities 19,550 19,507 FHLB dividends 2,277 1,335 Interest bearing bank balances Total interest income $ 128,384 $ 136,078 Interest expense Money market $ 2,927 $ 4,015 CD's 4,380 5,661 Other interest bearing deposits Borrowings - Short term (<92 days) 1,378 2,176 Borrowings - long term 4,256 4,840 Total interest expense $ 13,357 $ 16,840 For the Year Ended December 31, Non-interest income Service charges on deposits $ 3,838 $ 4,081 Fees and commissions 2,234 1,896 Bank owned life insurance 1,576 1,519 Gain on sale of OREO / fixed / other assets 1, Gain (loss) on sale of securities Gain on sale of loans 3, Swap fee income Other non-interest income Total non-interest income $ 13,307 $ 9,378 Non-interest expense Salary and employee benefits $ 56,789 $ 59,616 Deferral of loan origination costs (2,955) (5,873) Occupancy 6,919 6,808 Professional Services 3,114 4,975 FDIC Insurance 1,724 1,241 Net OREO income (expense) Data processing 3,489 3,401 Other expense 8,860 8,613 Total non-interest expense $ 78,328 $ 78,887

7 COMMUNITY BANK - FINANCIAL HIGHLIGHTS (Unaudited) (Amounts in Thousands, except per share data) BALANCE SHEET December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Cash and cash equivalents $ 47,552 $ 57,612 $ 59,386 $ 48,546 $ 44,298 Investments 913, , , , ,415 FHLB Stock 17,250 18,765 17,512 17,250 17,250 Non-owner occupied real estate loans 823, , , , ,714 Owner occupied real estate loans 1,078,652 1,095,176 1,145,592 1,175,410 1,191,757 Total real estate loans 1,902,273 1,919,682 2,029,403 2,058,609 2,111,471 Commercial & industrial loans 545, , , , ,462 Other loans 46,902 41,133 43,433 43,303 37,926 Total loans 2,494,507 2,516,523 2,649,690 2,687,281 2,739,859 Loan loss reserve (35,166) (33,449) (34,824) (35,345) (35,346) Net loans 2,459,341 2,483,074 2,614,866 2,651,936 2,704,513 Other assets 147, , , , ,922 Total assets $ 3,584,959 $ 3,625,043 $ 3,749,448 $ 3,740,712 $ 3,747,398 Earning assets $ 3,440,426 $ 3,479,318 $ 3,614,466 $ 3,601,919 $ 3,606,816 Non-interest bearing deposits $ 1,047,221 $ 1,055,942 $ 1,135,140 $ 1,188,818 $ 1,177,453 Interest bearing deposits 1,634,773 1,589,917 1,611,711 1,682,461 1,682,761 Total deposits 2,681,994 2,645,859 2,746,851 2,871,279 2,860,214 Borrowings - short term 228, , , , ,500 Borrowings - long term 315, , , , ,000 Other liabilities 32,256 28,452 27,782 31,888 32,274 Total liabilities 3,257,250 3,289,311 3,402,633 3,384,167 3,394,988 Stockholders' equity 327, , , , ,410 Total liabilities & stockholders'equity $ 3,584,959 $ 3,625,043 $ 3,749,448 $ 3,740,712 $ 3,747,398 DEPOSIT COMPONENTS Treasury deposits $ 385,662 $ 399,970 $ 407,647 $ 416,431 $ 400,752 Core Bank deposits 2,296,332 2,245,889 2,339,204 2,454,848 2,459,462 Total Deposits $ 2,681,994 $ 2,645,859 $ 2,746,851 $ 2,871,279 $ 2,860,214 Core deposits / total deposits 85.62% 84.88% 85.16% 85.50% 85.99% Non-interest bearing deposits/core deposits 45.60% 47.02% 48.53% 48.43% 47.87% As of As of CAPITAL RATIOS December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Tier 1 leverage capital 9.36% 9.35 % 9.39 % 9.50 % 9.43% Tier 1 risk-based capital 10.88% % % % 10.91% Total risk-based capital 12.08% % % % 12.04% Common equity tier 1 capital 10.88% % % % 10.91%

8 For the Quarters Ended INCOME STATEMENT December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Interest income $ 31,976 $ 31,582 $ 34,114 $ 35,256 $ 35,126 Interest expense 3,488 3,809 4,192 4,439 4,400 Net interest income 28,488 27,773 29,922 30,817 30,726 Provision for loan losses 3,498 (1,600) 1,000 (4,000) 104 Net interest income after provision 24,990 29,373 28,922 34,817 30,622 Non-interest income 1,972 1,981 3,141 2,353 1,903 Non-interest expense 20,537 18,730 18,436 20,598 21,123 Income before income tax 6,425 12,624 13,627 16,572 11,402 Income tax 2,197 4,837 5,273 6,431 10,960 Net income $ 4,228 $ 7,787 $ 8,354 $ 10,141 $ 442 For the Quarters Ended PERFORMANCE AND PER SHARE DATA December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Return on average equity 5.01% 9.51% 9.74% 11.40% 0.49% Return on average equity before effect of tax rate change 1) 5.01% 9.51% 9.74% 11.40% 8.00% Return on average assets 0.47% 0.87% 0.91% 1.08% 0.05% Return on average assets before effect of tax rate change 1) 0.47% 0.87% 0.91% 1.08% 0.76% Earning Asset Yields 3.73% 3.69% 3.87% 3.88% 3.84% Cost of Funds 0.40% 0.45% 0.48% 0.49% 0.48% Net interest margin 3.33% 3.24% 3.39% 3.39% 3.36% Efficiency ratio 67.42% 62.92% 55.76% 62.29% 64.85% Book value per common share $ $ $ $ $ Earnings per share - basic $ 1.35 $ 2.49 $ 2.67 $ 3.24 $ 0.14 Earnings per share - basic before effect of tax rate change 1) $ 1.35 $ 2.49 $ 2.67 $ 3.24 $ 2.30 Diluted earnings per common share $ 1.35 $ 2.49 $ 2.66 $ 3.23 $ 0.14 Diluted earnings per common share before effect of tax rate change 1) $ 1.35 $ 2.49 $ 2.66 $ 3.23 $ ) See Statement of non-gaap measures at the end of this document

9 For the Quarters Ended December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Interest income Loans $ 26,229 $ 26,124 $ 28,702 $ 30,064 $ 30,048 Securities 4,672 5,031 5,045 4,790 4,641 FHLB dividends 1, Interest bearing bnak balances Total interest income $ 31,976 $ 31,582 $ 34,114 $ 35,256 $ 35,126 Interest expense Money market ,034 1,344 CD's 1,213 1,216 1,438 1,522 1,485 Other interest bearing deposits Borrowings - Short term (<92 days) Borrowings - long term 1,236 1,193 1,241 1,214 1,192 Total interest expense $ 3,488 $ 3,809 $ 4,192 $ 4,439 $ 4,400 For the Quarters Ended December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Non-interest income Service charges on deposits $ 955 $ 1,021 $ 1,022 $ 1,013 $ 1,025 Fees and commissions Bank owned life insurance Gain on sale of OREO / fixed / other assets (12) (50) Gain (loss) on sale of securities - (15) Gain on sale of loans Swap fee income Other non-interest income Total non-interest income $ 1,972 $ 1,981 $ 3,141 $ 2,353 $ 1,903 Non-interest expense Salary and employee benefits 15,923 14,595 14,302 15,181 15,538 Deferral of loan origination costs (1,231) (1,256) (1,896) (1,492) (1,229) Occupancy 1,698 1,710 1,640 1,776 1,682 Professional Services ,000 1,126 2,274 FDIC Insurance Net OREO income (expense) Data processing 1, , Other expense 2,170 1,952 2,106 2,606 1,949 Total non-interest expense $ 20,537 $ 18,730 $ 18,436 $ 20,598 $ 21,123

10 (In thousands) COMMUNITY BANK - FINANCIAL HIGHLIGHTS AVERAGE BALANCE SHEET AND YIELDS (Unaudited) For the Year Ended December 31, 2016 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate INTEREST EARNING ASSETS Loans and leases $2,508,726 $106, % $2,607,885 $114, % Investment securities 927,427 19, % 910,132 19, % FHLB Stock/Dividends 18,744 2, % 17,793 1, % FFSold/Fed balances/due from Time 19, % 26, % Total Earning Assets 3,474, , % 3,562, , % Nonearning assets 126, ,615 Total Assets $3,600,916 $3,700,974 For the Year Ended December 31, 2017 INTEREST BEARING LIABILITIES Time deposits 617,508 4, % 564,348 5, % Interest bearing demand 164, % 77, % Money market 854,987 2, % 955,272 4, % Savings and other 39, % 46, % Total Interest Bearing Deposits 1,676,086 7, % 1,643,132 9, % Borrowings - short term 304,382 1, % 233,951 2, % Borrowings - long term 253,361 4, % 312,131 4, % Total Interest Bearing Liabilities 2,233,829 13, % 2,189,214 16, % Non-interest bearing deposits 1,007,703 1,132,495 Accrued interest payable and other liabilities 27,167 32,519 Total Liabilities 3,268,699 3,354,228 Shareholders' equity 332, ,746 Total Liabilities and Shareholders' Equity $3,600,916 $3,700,974 Net Interest Spread 3.10% 3.05% Effect of noninterest-bearing sources 0.21% 0.30% Net Interest Income and Margin $115, % $119, %

11 (In thousands) COMMUNITY BANK - FINANCIAL HIGHLIGHTS AVERAGE BALANCE SHEET AND YIELDS (Unaudited) Quarters Ended December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Average Yield/ Average Yield/ Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate INTEREST EARNING ASSETS Loans and leases $2,481,496 $26, % $2,510,592 $26, % $2,563,327 $28, % $2,652,270 $30, % $2,702,750 $30, % Investment securities 889,076 4, % 924,218 5, % 937,691 5, % 911,808 4, % 867,418 4, % FHLB Stock/Dividends 17,250 1, % 18, % 18, % 17, % 17, % FFSold/Fed balances/due from Time 19, % 18, % 20, % 27, % 39, % Total Earning Assets 3,407,683 31, % 3,471,174 31, % 3,540,149 34, % 3,608,730 35, % 3,627,157 35, % Nonearning assets 136, , , , ,469 Total Assets $3,544,635 $3,616,581 $3,679,175 $3,738,930 $3,766,626 INTEREST BEARING LIABILITIES Time deposits 602,108 1, % 568,364 1, % 588,910 1, % 570,096 1, % 530,375 1, % Interest bearing demand 81, % 84, % 75, % 75, % 73, % Money market 931, % 887, % 880, % 979,452 1, % 1,071,997 1, % Savings and other 43, % 43, % 44, % 47, % 48, % Total Interest Bearing Deposits 1,658,447 2, % 1,584,262 2, % 1,589,332 2, % 1,672,643 2, % 1,724,424 2, % Borrowings - short term 128, % 327, % 288, % 212, % 109, % Borrowings - long term 318,261 1, % 315,000 1, % 313,494 1, % 315,000 1, % 305,109 1, % Total Interest Bearing Liabilities 2,105,295 3, % 2,227,246 3, % 2,190,914 4, % 2,200,371 4, % 2,139,168 4, % Non-interest bearing deposits 1,070,434 1,023,236 1,113,374 1,154,496 1,236,292 Accrued interest payable and other liabilities 33,160 34,141 31,019 31,037 33,387 Total Liabilities 3,208,889 3,284,623 3,335,307 3,385,904 3,408,847 Shareholders' equity 335, , , , ,779 Total Liabilities and Shareholders' Equity $3,544,635 $3,616,581 $3,679,175 $3,738,930 $3,766,626 Net Interest Spread 3.07% 3.00% 3.10% 3.08% 3.02% Effect of noninterest-bearing sources 0.25% 0.24% 0.29% 0.31% 0.34% Net Interest Income and Margin $28, % $27, % $29, % $30, % $30, % 3.24%

12 COMMUNITY BANK - FINANCIAL HIGHLIGHTS ALLL Trend and Statistics (Unaudited) (Amounts in Thousands) For the Year Ended ALLL ROLLFORWARD December 31, 2016 December 31, 2017 Beginning Balance $ 36,327 $ 35,166 Provision for / (Release of) Loan Losses 6,948 (4,496) Charge Offs (9,161) (690) Recoveries 1,052 5,366 Net (Charge Offs) Recoveries (8,109) 4,676 Ending Balance $ 35,166 $ 35,346 Period End Loan Balance $ 2,494,507 $ 2,739,859 Average Loan Balance for the period $ 2,508,726 $ 2,607,885 ASSET QUALITY INDICATORS Non-Performing Loans 16,188 9,041 OREO 3, Total Non-Performing Assets (NPA) $ 19,188 $ 9,866 Criticized Loan Totals $ 66,196 $ 17,097 Loans and Leases days past due 2,708 4,175 Loans and Leases >89 days past due 2 - Total Delinquent Loans and Leases $ 2,710 $ 4,175 Delinquent Loans and Leases to Total Loans 0.11% 0.15% Net Charge Offs to Avg Loans (Annualized) -0.32% 0.18% NPL as a % of Total Loans 0.65% 0.33% NPA as a % of Total Loans + OREO 0.77% 0.36% ALLL/Non Performing loans 217.2% 391.0% ALLL as a % of Total Loans 1.41% 1.29%

13 COMMUNITY BANK - FINANCIAL HIGHLIGHTS ALLL Trend and Statistics (Unaudited) (Amounts in Thousands) For the Quarters Ended ALLL ROLLFORWARD December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Beginning Balance $ 35,826 $ 35,166 $ 33,449 $ 34,824 $ 35,345 Provision for / (Release of) Loan Losses 3,498 (1,600) 1,000 (4,000) 104 Charge Offs (4,941) (295) (24) (156) (215) Recoveries , Net Charge Offs (4,158) (117) 375 4,521 (103) Ending Balance $ 35,166 $ 33,449 $ 34,824 $ 35,345 $ 35,346 Period End Loan Balance $ 2,494,507 $ 2,516,523 $ 2,649,690 $ 2,687,281 $ 2,739,859 Average Loan Balance for the period $ 2,481,496 $ 2,510,592 $ 2,563,327 $ 2,652,270 $ 2,702,750 ASSET QUALITY INDICATORS Non-Performing Loans 16,188 14,979 12,157 3,951 9,041 OREO 3, Total Non-Performing Assets (NPA) $ 19,188 $ 14,979 $ 12,157 $ 4,776 $ 9,866 Criticized Loan Totals $ 66,196 $ 25,893 $ 22,366 $ 26,954 $ 17,097 Loans and Leases days past due 2, ,624 4,175 Loans and Leases >89 days past due Total Delinquent Loans and Leases $ 2,710 $ 494 $ 701 $ 1,624 $ 4,175 Delinquent Loans and Leases to Total Loans 0.11% 0.02% 0.03% 0.06% 0.15% Net Charge Offs to Avg Loans (Annualized) -0.67% -0.02% 0.06% 0.68% -0.02% NPL as a % of Total Loans 0.65% 0.60% 0.46% 0.15% 0.33% NPA as a % of Total Loans + OREO 0.77% 0.60% 0.46% 0.18% 0.36% ALLL/Non Performing loans 217.2% 223.3% 286.5% 894.6% 391.0% ALLL as a % of Total Loans 1.41% 1.33% 1.31% 1.32% 1.29%

14 COMMUNITY BANK Statement on Non-GAAP Measures GAAP to Non-GAAP Reconciliation and Calculation of Non-GAAP Performance Measures (unaudited) (Amounts in Thousands, except shares and per share data) Community Bank believes the presentation of the following non-gaap financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of operations and financial condition of the Bank. Managment uses non-gaap financial measures in its analysis of the Bank's performance. These non-gaap measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-gaap performance measures that may be presented by other companies. For the Quarters Ended For the Year Ended December 31, December 31, Dollar Percent Dollar Percent Change Change Change Change Selected Financial Data and Highlights Net income 4, (3,786) (89.5%) 26,823 26,724 (99) (0.4%) Effect of tax rate change - 6,771 6, ,771 6,771 - Net income before effect of tax rate change $ 4,228 $ 7,213 $ 2, % $ 26,823 $ 33,495 $ 6, % Return on average equity 5.01% 0.49% 8.07% 7.71% Effect of tax rate change Return on average equity before effect of tax rate change 5.01% 8.00% 8.07% 9.66% Return on average assets 0.47% 0.05% 0.74% 0.72% Effect of tax rate change Return on average assets before the effect of tax rate change 0.47% 0.76% 0.74% 0.91% Earnings per share - basic $ 1.35 $ 0.14 $ (1.21) (89.6%) $ 8.57 $ 8.53 $ (0.04) (0.5%) Effect of tax rate change Earnings per share - basic before effect of tax rate change $ 1.35 $ 2.30 $ % $ 8.57 $ $ % Earnings per share - diluted $ 1.35 $ 0.14 $ (1.21) (89.6%) $ 8.57 $ 8.52 $ (0.05) (0.6%) Effect of tax rate change Earnings per share - diluted before effect of tax rate change $ 1.35 $ 2.29 $ % $ 8.57 $ $ % Weighted average shares outstanding - basic 3,128,266 3,134,095 3,128,266 3,133,472 Weighted average shares outstanding - dilutive 3,128,609 3,143,534 3,128,350 3,136,431