Community Banks of Northern California Promotes Castro Valley Branch Manager Stephen Kautz Promoted to Branch President of Bank’s Castro Valley Office

TRACY, Calif. – October 7, 2006 – Community Banks of Northern California, a leading community bank headquartered in Tracy, today announced that it has promoted Stephen Kautz to the position of branch president of its Castro Valley office.

“We’re pleased to announce Steve’s much-deserved promotion to branch president,” said Tom Havens, president and CEO of Community Banks of Northern California. “He is a great leader, has built strong community relationships, and continues to inspire the very best in his dedicated staff. We look forward to working closely with Steve as the Castro Valley office continues to grow and thrive.”

Before coming to Community Banks of Northern California in July 2005, Steve held various positions in operations and lending. Most recently, he was a senior credit officer for an independent bank. Mr. Kautz has 27 years of experience in the banking industry, and is an active member of the Hayward Rotary. In addition, the bank has memberships in the Castro Valley, Hayward and San Leandro Chambers of Commerce.

Community Banks of Northern California is the only remaining community bank in the Castro Valley and Hayward areas, and its concentration is on providing solutions, not just products, to individuals and businesses. Mr. Kautz is a key part of this process, and was instrumental in securing a $9.5 million loan for a new condominium project in Berkeley and a substantial loan for Women on the Way, a non-profit Hayward organization.

"In all my years in the banking industry, I have never worked with such a committed staff - they are 100 percent dedicated to customer satisfaction,” commented Steve. “And, I am thrilled to be part of the CBNC team and will continue to work hard to insure satisfied customers and happy employees!"

Kautz holds a B.S. degree in business management from California State University Sacramento. He also has an advanced degree from the University of Washington.

About Community Banks of Northern California
Headquartered in downtown Tracy, Community Banks of Northern California has branch offices in Castro Valley and West Tracy, along with a loan production office in Rocklin and the scheduled opening of a new Lathrop office in early 2007, and is a wholly owned subsidiary of Colorado-based Community Bankshares, Inc. Community Banks of Northern California offers a wide range of financial services to consumers and small businesses, and is a competitive construction lender committed to reinvestment in the community, while adapting an array of financial products and services to meet the local community’s needs.

About Community Bankshares, Inc.
Community Bankshares, Inc. is a diversified financial services holding company and a community banking organization serving the states of California and Colorado, including Community Banks of Northern California and Community Banks of Colorado. Community Bankshares, Inc. also provides mortgage services through Affiliated Financial Groups, Inc. and Banker’s Mortgage Corporation.

For additional information contact:

Tom Havens
Community Banks of Northern California
209-839-2153
thavens@cobnks.com
— or —
Steve Kautz
Community Banks of Northern California
510-405-6202
skautz@cobnks.com