Security Bank of California Announces its Third Quarter Earnings

Security Bank of California (OTCBB:SCAF) announced today its financial results for the third quarter and the nine months ended September 30, 2008. The Bank reported net income for the quarter of $188,857, an increase of 38% over the $137,101 reported in the same period last year.

Net Income for the nine months ended September 30, 2008 was $691,278, which was an increase of $399,982 over the $291,296 reported for the first nine months of 2007.

The Bank reported Total Assets of $237.5 million, compared to $191.8 million on the same date a year ago. Total Loan outstandings grew to $191.1 million, an increase of 45% over the $131.5 million reported as of September 30, 2007.

Total Deposits also increased $37.6 million to $194.1 million as of September 30, 2008, when compared to the $156.5 million as of September 30, 2007. The Bank did indicate that $12.4 million of that increase was attributable to a short-term deposit due to the liquidity event of one client that is anticipated to be withdrawn prior to the end of the fourth quarter.

The Bank’s capital ratios remain strong, and in excess of those defined as “well capitalized” by regulatory agencies. The Bank’s Tier 1 Leverage, Tier 1 Risk Based Capital and Total Risk Based Capital Ratios are 16.47%, 15.74% and 16.83%, respectively. The bank’s loan loss reserve of $2.3 million equates to 1.21% of the bank’s total loans. The bank reported that it does not have any nonperforming or delinquent loans as of September 30, 2008.

“We are pleased with our results for the first nine months of 2008 given the challenging financial landscape we all face,” commented James A. Robinson, the Bank’s Chairman and Chief Executive Officer. “Our team has and will remain committed to building our franchise through quality disciplined growth,” added Robinson. “Security Bank of California has never been involved in sub prime lending, either as a lender or an investor, and has never been a shareholder of Fannie Mae or Freddie Mac, but has remained steadfast in its commitment to serving the needs of the local business community.”