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2nd Quarter 2011 Shareholders Report (click here for full PDF version with Financial Supplement)

June 1, 2011 —We are pleased to share with you Ojai Community Bank’s continued progress as we experience continued profitability, improved credit quality and stable deposit levels. The economy continues to be a challenge and we may still be in for more market challenges ahead. We will continue to forge forward together to ensure proactive success.

Total assets of the Bank have grown slightly since the first of the year to approximately $125 million at June 30, 2011. Core earnings for the first six months were approximately $516 thousand and, after a loan loss provision expense of $350 thousand, our net income was $166 thousand for the first six months of 2011. We believe these metrics in the aggregate compare favorably to the first six months of 2010. Core earnings continue to be our focus in creating long term value.

We believe the Bank has made significant progress in the credit administration area. As of December 31, 2010, the Bank had $12 million in capital and $10.7 million, or 90% of capital, of problem loans. We are happy to announce that as of June 30, 2011, the amount of the Bank’s problem loans has dropped to $6.7 million or approximately 55% of capital. We believe that the amount and speed in which we were able to decrease problem loans is significant and improves the risk profile of the Bank. We do not, however, intend to rest on our laurels; our goal is for further improvement over the months ahead.

The Santa Paula division continues to perform very well with stable low cost deposits and performing loans. We believe Don Tello and his team do an excellent job overseeing the Santa Paula market.

The Bank’s overall loan growth continues to be a challenge as we see fewer high quality credit requests. We will continue to work hard in this area, as loan growth leads to strong long-term earnings for the Bank. Our liquidity remains robust and our capital level has stabilized providing a sound base.

We are proud to be here locally supporting our community and individual customers. Everyday, we hear stories about the struggles people have with their other financial institutions. We are grateful to our staff and directors who are working very hard to improve the success of our local community bank. We thank you, our loyal shareholders, for your continued support. Not a day goes by that we are not focusing on creating value. We look forward to continued improvement in the months and years ahead.

Whether you are a shareholder or customer (and we prefer that you are both), you have a unique opportunity to stop by and talk with the President of your Bank. We truly value your relationship and hope that if you have a question, concern or suggestion, you will come in and talk with us. Contact can be made to Dave Brubaker, President/CEO, at the office located at 402 W. Ojai Ave, Ojai CA 93023, dbrubaker@ojaicommunitybank.com or 805-646-9909.

Sincerely,

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