SCVBank Reports Earnings for 2009

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					SCVBank Reports Earnings for 2009
March 29, 2010 03:25 PM Eastern Daylight Time  

SANTA PAULA, Calif.--(EON: Enhanced Online News)--Santa Clara Valley Bank (SCVBank) (OTCBB:
SCVE) today announced its 2009 fourth quarter and year-end financial results.

The local economy presented many challenges for Santa Clara Valley Bank in 2009. In spite of the challenges, total
revenue for 2009 was $8,100,000, which was 5% higher than the 2008 level. Net interest income increased by 8%
to a record high of $5.4 million. Pre tax core operating income was $976,000 in 2009, offset by $4.3 million in
provisions to the loan loss reserve. The Bank posted a book loss for 2009 of $3,103,000 or ($2.88) per share
(basic) available to common shareholders. Net income for 2008 was $256,000 or $0.24 per share. The Bank
remains very well capitalized.

As the economy deteriorated, a handful of bad loans became collateral dependent during the year. Required periodic
appraisals reflected decreased values and charge-offs increased. Due to the downward trend in credit quality, the
allowance for loan loss was prudently increased. In fact, over 50% of the Bank’s 2009 pre-tax operating loss can be
attributable to the enrichment of the loan loss allowance, which at year-end was 3.22% of total loans.

SCVBank’s net interest margin trend has been positive for the second half of 2009. For February, 2010 the net
interest margin was 4.53%.

Operating expenses increased 16% over 2008 due in part to higher FDIC insurance premiums, increased data
processing costs, higher legal bills on collection accounts, and higher medical insurance premiums. For 2010, over
$500,000 in budget cuts were made to improve the Bank’s efficiency.

Bank assets at year-end were $139.7 million, an increase of 15% over the 2008 year-end level of $121.0 million.

President and CEO Michael Hause stated, “SCVBank’s customer base continues to grow. The number of accounts
the Bank holds increased 7.5% during 2009, ending at 5,236. Our commitment to customer service was recognized
as SCVBank was recently named the Best Bank in the Santa Clarita Valley by The Signal newspaper." Hause
continued, “As we begin 2010, SCVBank’s liquidity remains strong. We have plenty of funds to lend, and are
looking for opportunities to help with the economic recovery.” 

Founded in 1998, Santa Clara Valley Bank has offices in Santa Paula, Fillmore, and Valencia. Under its stock
symbol of SCVE.OB, Santa Clara Valley Bank's stock is traded through Wedbush Morgan Securities, and Howe
Barnes Hofer & Arnett. The Bank's web site is www.SCVBank.com.

Santa Clara Valley Bank Corporate Headquarters
901 East Main Street
Santa Paula, California 93060
805-525-1999

Statements concerning future performance, developments or events concerning expectations for growth and market
forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a
number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors
include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, the impact
of consolidation in the banking industry, financial policies of the United States government, and general economic
conditions.
Santa Clara Valley Bank, N. A.
Balance Sheets
                                                     Audited           Audited
                                                     December 31, 2009 December 31, 2008
Assets:
Cash and due from banks                              $ 4,522,000             $ 4,068,000
Investments                                            30,286,000              13,083,000
Loans                                                  103,131,000             101,851,000
Allowance for loan losses                              (3,312,000        )     (1,672,000     )
Other assets                                           5,070,000               3,647,000
Total Assets                                         $ 139,697,000           $ 120,977,000
Liabilities and Stockholders' Equity:
Deposits                                                $ 121,248,000        $ 99,986,000
FHLB Advances                                             6,550,000            9,050,000
Other liabilities                                         493,000              878,000
Stockholders' equity                                      11,406,000           11,063,000
Total Liabilities and Stockholders' Equity              $ 139,697,000        $ 120,977,000
                                                        Audited              Audited
                                                        For the Year         For the Year
Statements of Income                                    Ended 12-31-09       Ended 12-31-08
Interest income                                         $ 7,232,000          $ 6,795,000
Interest expense                                          1,811,000            1,769,000
Provision for loan losses                                 4,313,000            944,000
Noninterest income                                        862,000              903,000
Noninterest expense                                       5,307,000            4,592,000
Income (loss) before taxes                                (3,337,000     )     393,000
Income tax (benefit) provision                            (353,000       )     137,000
Net Income (loss)                                         (2,984,000     )     256,000
Preferred stock dividend                                  119,000              0
Net income (loss) applicable to common shares           $ (3,103,000     )   $ 256,000
Earnings (loss) per common shares, basic                  ($2.88         )   $ 0.24
Quarterly net income (loss)                             $ (1,195,000     )   $ (165,000       )
Preferred stock dividend                                  40,000               0
Quarterly net income (loss) applicable to common shares $ (1,235,000     )   $ (165,000       )
Quarterly earnings (loss) per common share, basic         ($1.15         )     ($0.15         )
Book value per share                                    $ 7.90               $ 10.22
Common shares outstanding (end of period)                 1,077,167            1,082,766
Return on average assets                                  -2.17          %     0.23           %
Return on beginning equity                                -24.03         %     2.30           %
Tier 1 leverage ratio                                     8.15           %     9.53           %
Tier 1 risked-based capital ratio                         11.04          %     10.80          %
Total risk-based capital ratio                            12.31          %     12.05          %
Nonperforming assets                                    $ 4,741,000          $ 2,338,000

Contacts
Santa Clara Valley Bank, N.A.
Michael D. Hause
President & Chief Executive Officer
805-525-7847

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Description: SANTA PAULA, Calif.--(EON: Enhanced Online News)--Santa Clara Valley Bank (SCVBank) (OTCBB: SCVE) today announced its 2009 fourth quarter and year-end financial results. The local economy presented many challenges for Santa Clara Valley Bank in 2009. In spite of the challenges, total revenue for 2009 was $8,100,000, which was 5% higher than the 2008 level. Net interest income increased by 8% to a record high of $5.4 million. Pre tax core operating income was $976,000 in 2009, offset by $4.3 mill a style='font-size: 10px; color:
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