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Ojai Community Bank Reports 1st Quarter Results

The Ojai Community Bank (OCB), of which the Santa Paula Community Bank is a division, celebrated its 6th year in business this past March. We continue to grow our customer relationships and enjoy supporting the communities we serve.

For the calendar year ending December 31, 2010, the Bank saw continued and stable asset growth. Total assets increased 10.2% to $123.9 million. The loan portfolio increased $4.8 million to $85.8 million. For the calendar year 2010, the core earnings were $1.2 million, before a provision for loan loss reserves of $ 1.9 million and an extraordinary income event of $500,000. This activity and other adjustments resulted in a reportable loss for the 2010 calendar year of $289 thousand.

For the calendar quarter ending March 31, 2011, assets continue to be stable with new loan volume declining slightly. Outstanding loans decreased from $85.8 million at the end of 2010 to $79.2 million at March 31, 2011. Core earnings for the quarter were $240,000, before a provision for loan loss reserves of $175,000 resulting in reportable income of $65,000.

The Bank’s recent decline in loan quality coupled with lower capital ratios as a result of increased loan loss provisions, has led to the FDIC requiring closer oversight of the Bank. Effective March 31, 2011, the bank entered into a Consent Order with the FDIC, a formal agreement designed to strengthen financial performance, restore earnings, improve asset quality, and provide for adequate capital and liquidity.

"Many of the requirements set forth in the Consent Order have been satisfied or are in the process of being completed. A capital plan is being formulated which the bank intends to implement. As to credit issues, the bank is addressing these issues aggressively, albeit it is difficult in these tough economic times to see our friends and neighbors day in and day out in the grocery store or gas station, knowing some of them are struggling to pay us back" shares Dave Brubaker, President and CEO of the Bank.

"The Bank is well on our way to correcting many of the items in the order," reports Brubaker. "We believe with the corrective actions undertaken, we will continue to strengthen the safety and soundness of our operation, increase profitability, and prospects for the Bank."

Founded in 2005, the Bank operates three branches in Ojai and Santa Paula. Under the stock symbol OJCB, stock is traded through Stone and Youngberg and Howe Barnes Hofer & Arnett. The Bank’s website is www.ojaicommunitybank.com.

This press release includes forward-looking information, which is subject to the "safe harbor" created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act and the Private Securities Litigation Reform Act of 1995. When the Bank uses or incorporates by reference in this letter the words "anticipate," "estimate," "expect," "project," "intend," "commit," "believe," and similar expressions, the Company intends to identify forward-looking statements. Our actual results may differ materially from those projected in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors that are beyond our control.

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