Bank of Santa Clarita Reports First Quarter 2009 Results

Bank of Santa Clarita, the only community bank headquartered in the Santa Clarita Valley, reported earnings for the first quarter of 2009 of $39,000 as compared to first quarter 2008 earnings of $49,000. The Bank reported a year over year increase in its net interest margin of $184,000, as net interest income totaled $1.42 million for the first quarter of 2009, a 15% improvement over the $1.23 million recorded in the first quarter of 2008.

During the first quarter the Bank opened its third full-service branch, located in the Canyon Country Area of the Santa Clarita Valley. This office is intended to serve retail consumers as well as small businesses, and is the Bank's first branch to focus on retail consumer banking. First quarter results include approximately $50,000 of new branch start-up costs which the Bank expects to recoup in the future.

"Executive management is pleased with the Bank's results for the first quarter of 2009 which were well within budget and the Bank's strategic plan," said James D. Hicken, President and Chief Executive Officer. "Banks are operating in an increasingly challenging environment today and we believe that Bank of Santa Clarita is properly positioned to take advantage of opportunities as our competitors experience difficulties. For our part we have elected to prudently increase our loan loss provision for the first quarter by $140,000, or 1.35% of total loans compared with 1.21% at December 31, 2008. That said, the Bank's credit quality remains very high with nominal non-performing assets."

At March 31, 2009, shareholders' equity was $19.26 million and the Bank's total risk-based regulatory capital ratio was 16.33%, significantly exceeding the "well-capitalized" level of 10% prescribed under regulatory requirements. The Bank also continues to maintain substantial liquidity positions, retaining significant balances of on-balance sheet liquidity as well as available collateralized borrowings and other potential sources of liquidity.

Bank of Santa Clarita, founded in 2004, is the only independent, full service community bank headquartered in Santa Clarita and generally serves the needs of retail consumers, 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 to address their SBA and other credit requirements, and also 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 local 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
                                                             March 31,     December 31,    March 31,
                                                                  2009            2008          2008
                                                             (In thousands)
ASSETS
Cash and Due From Banks                                      $    3,806    $      1,723    $    2,020
Interest Bearing Deposits with Other Financial Institutions       4,788           5,278         -
Federal Funds Sold                                                7,561           9,639         12,678
Investment Securities                                             11,037          12,564        2,000
Loans (Net)                                                       116,106         119,238       114,576
Other Assets                                                      4,625           4,224         3,279
Total Assets                                                 $    147,923  $      152,666  $    134,553
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest Bearing Demand Deposits                          $    29,202   $      25,140   $    24,715
Interest Bearing Demand Deposits                                  4,974           4,928         7,452
Money Market and Savings Deposits                                 15,860          15,840        22,286
Time Deposits                                                     47,543          52,542        46,584
Total Deposits                                                    97,579          98,450        101,037
Borrowings                                                        30,388          34,286        14,198
Other Liabilities                                                 692             713           625
Total Liabilities                                                 128,659         133,449       115,860
Stockholders' Equity                                              19,264          19,217        18,693
Total Liabilities & Stockholders' Equity                     $    147,923  $      152,666  $    134,553

STATEMENTS OF OPERATIONS
Unaudited
                                                             For the Three Months Ended March 31,
                                                                    2009        2008
Interest Income                                              (In thousands except per share amounts)
Loans                                                        $      1,774     $ 1,982
Interest Bearing Deposits with Other Financial Institutions         35          -
Investment Securities                                               117         24
Federal Funds Sold                                                  5           78
Total Interest Income                                               1,931       2,084
Interest Expense
Interest Bearing Demand Deposits                                    7           34
Money Market and Savings Accounts                                   28          144
Time Deposits                                                       340         614
Borrowings                                                          141         61
Total Interest Expense                                              516         853
Net Interest Income                                                 1,415       1,231
Provision for Loan Losses                                           140         1
Net Interest Income after Provision for Loan Losses                 1,275       1,230
Noninterest Income                                                  81          60
Noninterest Expense                                                 1,448       1,240
Net Earnings (Loss) Before Income Taxes                             (92    )    50
Income Taxes                                                        (131   )    1
Net Earnings                                                 $      39        $ 49
Basic and Diluted Earnings Per Share                         $      0.02      $ 0.04

SOURCE: Bank of Santa Clarita

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