SCVBank Reports Third Quarter Profitability by EON


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									SCVBank Reports Third Quarter Profitability
December 03, 2010 10:55 PM Eastern Time  

SANTA PAULA, Calif.--(EON: Enhanced Online News)--Santa Clara Valley Bank, N.A. (OTCBB:SCVB)
announced that the Bank had a Net Profit of $60,000 for the 3rd quarter. The profit reflects improving trends in the
Bank’s loan portfolio and the net interest margin, which has improved to 4.30% from 3.99% as of March 31, 2010.
Capital levels remain strong with the Tier 1 Leverage Capital, and the Total Risk Based Capital ratios at 9.09% and
14.81%, respectively.

Michael D. Hause, President and CEO reported, “We generated a quarterly profit as a result of SCVBank’s
improving net interest margin, tight controls on expenses, and improving trends in the Bank’s loan portfolio, in spite
of the continuing recessionary environment.” 

The Bank has entered into a formal Consent Order with its primary regulator, the Office of the Comptroller of the
Currency (OCC), to adopt an action program designed to further enhance the strength and stability of the Bank’s
operations. Mr. Hause said, “This Consent Order is based upon an examination reviewing the Bank’s 2009
performance. Over the past year we have made significant progress in aggressively addressing many of the areas
outlined in the Order, including real estate-related issues within our portfolio. As a result, many of the prudent actions
recommended by the OCC have already been completed, while others will be completed shortly. Nonetheless, we
will continue working in close consultation with our regulators and executing on our strategic plan to help ensure the
long-term strength and performance of Santa Clara Valley Bank.” 

As part of the Order, the Bank consented to specific steps that it will undertake to further enhance the Bank’s
performance. These affirmative actions include developing and implementing a plan to maintain strong capital levels,
to improve internal controls on the loan portfolio, and revising and expanding the Bank’s long-term business plan and

“Santa Clara Valley Bank, like many other institutions, has not been immune to the unprecedented challenges facing
the economy and real estate markets. In fact, an industry expert recently noted that roughly two-thirds of all banks in
California are subject to some kind of agreement with their regulator. In spite of the state of the economy, Santa
Clara Valley Bank continues to maintain strong capital levels, and our balance sheet reflects a very strong liquidity
position, with over $40 million in investments, and has been well positioned to deal with the current historic low
interest rate environment. Since 2009, the Bank’s ratios have improved in most areas, including improved operating
performance as reflected in the net profit for the third quarter of $60,000. Everyone at Santa Clara Valley Bank
remains highly committed to providing the excellent service its customers have come to expect as we continue to
focus on the needs of the local community,” stated CEO Hause.

Founded in 1998, SCVBank currently operates three branches in Santa Paula, Fillmore, and Valencia. Under its
stock symbol of SCVE.OB, SCVBank's stock is traded through McAdams Wright Ragen, Howe Barnes Hofer &
Arnett, and Monroe Securities. The Bank's web site is

   Santa Clara Valley Bank Corporate Headquarters
   901 East Main Street
   Santa Paula, California 93060

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

Santa Clara Valley Bank, N.A.
Michael D. Hause
President & Chief Executive Officer


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