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SCVBank Reports Earnings for 2009

Santa Paula, CA. March 29, 2010- Santa Clara Valley Bank (SCVBank; OTC BB: SCVE.OB) 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."

PDF 2009 Financial Results - (PDF)


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 conditions.

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