QUARTERLY FINANCIAL STATEMENT

     Net income for three months ended March 31, 2009 was $27,515 or $0.09 per share compared to $97,508 or $0.31 per share for the same period last year.  The net interest margin was 4.21% compared to 4.13% during the same period of the prior year.

     The increase in profit is primarily due to the following factors:

• FDIC assessments increased by $64,280 over the same period in 2009.
  
• Funding of the Allowance for loan loss reserve was $150,000 for the year compared to $100,000 for the previous year. The banks loan loss provision stands at 1.30% of total loans compared to 1.01% one year ago.

• Loss on sale of assets, real estate was recorded at $43,859.

     We continue to monitor the loan portfolio and will fund the reserve as needed. Past due loans (30 days and over) make up 5.53% of the total loans compared to 4.80% at March 31, 2009. Other Real Estate (ORE) totals $1,378,380, which includes residential and commercial real estate the bank has in its possession. Various methods are being used to liquidate these properties. Visit the banks web site at gotocsb.com  to see the list of properties the bank has for sale.

     The banks Tier 1 risk based capital ratio is 11.24% as compared to 10.24% one year ago and 10.02% on 12-31-07, following the merger with the Montrose State Bank.  Community State Bank is considered "well-capitalized" under regulatory guidelines. No dividend was paid for the period.   This decision to issue a stock dividend will be re-evaluated on a quarterly basis.

     One hundred and fifty shares of Community Bancorp, Inc shares were sold at $52.00 per share during this period.