Bank of Santa Clarita Reports Second Quarter 2008 Results

Bank of Santa Clarita reported significantly improved earnings in 2008 over the respective 2007 periods. It reported that net income for the quarter ended June 30, 2008, grew to $102,000 compared to a net loss of $202,000 for the quarter ended June 30, 2007, and that net income for the six months ended June 30, 2008, as compared to the same period of 2007, improved to $151,000 from a net loss of $412,000.

The Bank reported that net interest income increased 20% to $1.32 million for the quarter ended June 30, 2008, as compared to the $1.10 million reported for the quarter ended June 30, 2007. Year-to-date results similarly reflect strong growth, as the Bank reported $2.55 million of net interest income for the six months ended June 30, 2008, an increase of 22% over the $2.09 million reported for the same period of 2007.

"Executive management continues to be pleased with both the growth and development of the Bank as reflected in our 2nd quarter results," said James D. Hicken, President and Chief Executive Officer. "The Bank is reporting continued growth in quarterly profitability, and we are confident that our progress will continue despite the current economic challenges seen within the overall financial services sector. The Bank's loan portfolio is performing well which is the result of management's conservative underwriting standards. Moreover, the Bank does not make sub-prime loans or traditional single family mortgage loans nor has it invested in any mortgage-backed securities which are backed by such loans."

At June 30, 2008, shareholders' equity was $18.8 million and the Bank's total risk-based regulatory capital ratio was 16.44% which exceeds the "well-capitalized" level of 10% under regulatory requirements. The Bank continues to maintain a strong liquidity position.

During the second quarter of 2008 the Bank launched a Small Business Administration Lending Unit to provide complementary SBA financing products for its clients. This is in line with the Bank's strategic plan and will allow for further diversification in the product offerings and will enhance the overall earnings of the Bank.

The Bank will be opening a new 4,000 square foot retail banking office in Canyon Country, California during the fourth quarter of 2008. This branch will be located in The Plaza at Golden Valley, which is a 620,000 square foot retail Power Center located off of the Highway 14 in the eastern Santa Clarita Valley. With the opening of this branch, the Bank expects to increase its focus on the retail consumer banking market while continuing to develop products and services for its small to mid-sized business clientele.

Bank of Santa Clarita, founded in 2004, is a premier, independent full service commercial bank that generally serves the needs of small to mid-sized businesses, professionals, entrepreneurs, and high-net worth individuals. The Bank provides local, experienced decision-making and the personalized service that growing businesses need on a daily basis. Bank clients have direct access to executive management and professional staff members, coupled with technology-based services that include online bill-paying, remote capture depositing, check imaging and initiating online wire transfers, among other cash management facilities, which services enable businesses to effectively and efficiently manage their cash and credit needs.

Bank of Santa Clarita Corporate Headquarters 27433 Tourney Road, Suite 150 Santa Clarita, California 91355 661-362-6004 www.bankofsantaclarita.com

FORWARD LOOKING STATEMENTS

Certain matters discussed in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Bank's current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers as these factors may impact the Bank's operating results, its ability to attract deposit and loan customers, the quality of the Bank's earning assets and government regulation. The Bank does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

BANK OF SANTA CLARITA BALANCE SHEETS Unaudited June December June 30, 31, 30, 2008 2007 2007 -------- ------------ -------- (In thousands) ASSETS Cash and Due From Banks $ 1,945 $ 2,834 $ 4,423 Federal Funds Sold 10,570 13,425 9,990 Investment Securities 2,000 3,000 3,001 Loans (Net) 116,738 121,437 111,035 Other Assets 3,290 3,453 3,155 -------- ------------ -------- Total Assets $134,543 $ 144,149 $131,604 ======== ============ ======== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest Bearing Demand Deposits $ 26,814 $ 23,436 $ 26,463 Interest Bearing Demand Deposits 6,469 6,415 5,740 Money Market and Savings Deposits 22,469 28,060 22,613 Time Deposits 35,143 52,373 56,723 -------- ------------ -------- Total Deposits 90,895 110,284 111,539 Other Borrowed Money 23,451 14,628 946 Other Liabilities 1,398 687 742 -------- ------------ -------- Total Liabilities 115,744 125,599 113,227 Stockholders' Equity 18,799 18,550 18,377 -------- ------------ -------- Total Liabilities & Stockholders' Equity $134,543 $ 144,149 $131,604 ======== ============ ========

STATEMENTS OF OPERATIONS Unaudited For the Three For the Six Months Ended Months Ended June 30, June 30, -------------- -------------- 2008 2007 2008 2007 ------ ------- ------- ------ Interest Income (In thousands except per share amounts) Loans $1,870 $1,762 $3,852 $3,306 Investment Securities 17 38 40 99 Federal Funds Sold 36 167 115 328 ------ ------- ------ ------- Total Interest Income 1,923 1,967 4,007 3,733 Interest Expense Interest Bearing Demand Deposits 19 49 53 103 Money Market and Savings Accounts 76 196 219 347 Time Deposits 362 611 977 1,176 Other Borrowed Money 145 10 206 19 ------ ------- ------ ------- Total Interest Expense 602 866 1,455 1,645 Net Interest Income 1,321 1,101 2,552 2,088 Provision for Loan Losses 26 179 26 312 ------ ------- ------ ------- Net Interest Income after Provision for Loan Losses 1,295 922 2,526 1,776 Noninterest Income 109 47 169 88 Noninterest Expense 1,302 1,170 2,543 2,275 ------ ------- ------ ------- Net Earnings (Loss) Before Income Taxes 102 (201) 152 (411) Income Taxes 1 1 1 ------ ------- ------ ------- Net Earnings (Loss) $ 102 $ (202) $ 151 $ (412) ====== ======= ====== ======= Basic and Diluted Earnings (Loss) Per Share $ 0.05 $(0.09) $ 0.07 $(0.19) ------ ------- ------ -------

SOURCE: Bank of Santa Clarita

Bank of Santa Clarita James D. Hicken President Chief Executive Officer 661-362-6001