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SCVBank Revises 2009 Third Quarter Financial Results

Santa Paula, CA. December 16, 2009- Santa Clara Valley Bank (SCVBank;OTC BB:SCVE.OB) today reported revised financial results for the nine months ended September 30, reflecting higher levels of provisioning for loan losses, which increased the net loss for the quarter.

After further detailed analysis, and in response to changing economic conditions, SCVBank increased its Allowance for Loan Losses from $1,612,000 to $2,911,000 as of September 30, 2009. SCVBank added $1,298,000 to its third quarter loan loss provision for a total provision of $1,860,000. Part of the consideration for the increased allowance was collateral reappraisals obtained in the fourth quarter.

“The revisions to the Bank’s financial results were made to recognize the ongoing challenges of the economy and its impact on our loan customers”, said Michael Hause, president and CEO. “The strengthened allowance for loan losses has positioned us to better navigate through the challenging economy.”

Notwithstanding the revisions, SCVBank remains well capitalized. Tier 1 leverage ratio is 8.99%, while the total risk-based ratio is 13.26%.

SCVBank recorded a net loss for the third quarter 2009 of $1,436,000 compared to a net profit of $165,000 for the period a year earlier. The reduction in net income occurred primarily due to the $1,860,000 addition to the allowance for loan losses, as a result of loans being adversely affected by the recession and its effect on collateral values. The Bank reported a profit of $73,000 in the second quarter of 2009. Net income per share (basic) available to common shareholders, after preferred stock dividends, was ($1.34) for the third quarter 2009, compared to $0.15 for the same period 2008.

For the nine month period ending September 30, 2009, the Bank has reported a loss of $1,870,000. This compares to a profit of $421,000 for the same period in 2008.

ABOUT SANTA CLARA VALLEY BANK (SCVBank)

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 www.SCVBank.com.

Santa Clara Valley Bank Corporate Headquarters
901 East Main Street
Santa Paula, California 93060
805-525-7847

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.

 
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