SANTA PAULA, CA. - Santa Clara Valley Bank (SCVBank;OTC BB:SCVE.OB) today announced its 2011 first quarter financial results.

SCVBank recorded a net profit of $131,000 for the first quarter of 2011 compared to a loss of $181,000 experienced a year earlier. The $131,000 profit results in an income per common share, basic of $0.09. The profit reflects improved credit conditions, reduced interest expense and reduced operational expenses.

Interest expense has been reduced from $346,000 for the first quarter 2010 to $215,000 for the same period in 2011. Non-interest income increased from $33,000 to $130,000 year-over-year.

Non-performing assets are down from $6.6 million as of March 31, 2010 to $4.9 million as of March 31, 2011.

Due to improved credit conditions, there was no loan loss provision taken in the first quarter 2011, compared to $300,000 in the same period in 2010. This change also reflects the current robust level of the Bank’s allowance for loan loss, at 2.91% of gross loans outstanding. Loan charge-offs were greatly reduced from $161,000 for this quarter, compared to $737,000 the same quarter 2010.

SCVBank continues to maintain a strong capital position with a Tier 1 leverage ratio of 10.35%, up from 9.14% a year ago. A Tier 1 leverage ratio of 5% is required to be considered a well capitalized institution. Total risk-based capital is 17.00%, well above the 10% level needed to be considered well capitalized.

Liquidity is very strong as cash and investments equal $48.8 million.

Total assets have dropped slightly over the past twelve months, from $136.6 million to $132.4 million. This drop occurred as management strategically steered high priced deposits from the balance sheet.

CEO Michael Hause noted, “The profitability in the first quarter is welcomed although optimum income will be achieved when non-performing assets are reduced further and loan growth is experienced.”

“The first quarter income of $131,000 is a testament to the hard work of the board and management to adapt to the economic conditions experienced over the past several years. The trends are positive,” said Chairman Ralph De Leon.

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.