Community Bank of Santa Maria : January 23, 2018 - CBSM Sale of Lompoc Branch

Community Bank of Santa Maria

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January 23, 2018

Janet Silveria, President/Chief Executive Officer Community Bank of Santa Maria

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Community Bank of Santa Maria Announces Agreement to Sell Lompoc Branch to Bank of the Sierra

SANTA MARIA, CA. -January 23, 2018-Janet Silveria, President and CEO of Community Bank of Santa Maria, confirmed the bank has entered into an agreement with Bank of the Sierra, the banking subsidiary of Sierra Bancorp, to acquire the deposits and certain assets of Community Bank of Santa Maria's division, Lompoc Community Bank.

Silveria stated this was a strategic move that will allow the bank to focus on its primary market in Santa Maria. "2017 was a record breaking year for the bank in terms of growth and profitability. However, that was realized primarily in the Santa Maria market." For Bank of the Sierra, the acquisition expands their footprint further into the central coast market.

After the close of the sale, which is expected to be in April, 2018, the Lompoc branch building and all the deposits will be owned and operated by Bank of the Sierra. Community Bank of Santa Maria will retain the majority of the loans. Further, branch personnel are expected to be retained by Bank of the Sierra.

Silveria confirmed that no shares of Community Bancorp of Santa Maria (OTCQX: CYSM) will be exchanged in the transaction. "We are happy to be retaining all our shareholders and think they will be happy with the positive impact the transaction is expected to have on the overall financial strength of the organization."

Community Bank of Santa Maria opened for business on March 1, 2001 and is listed on the OTCQX under the symbol CYSM. For more information visitwww.yourcbsm.com or contact Janet Silveria [e-mail] or by calling 805.922.2900.

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2739 Santa Maria Way* P. O. Box 5307 * Santa Maria, CA 93456

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