• Strong Credit Quality and Core Deposits
• Strong Capital Ratios
• Strong Liquidity

SANTA PAULA, CA - Santa Clara Valley Bank (SCVBank;OTC BB: SCVE) Chairman of the Board, Leslie Cornejo, today announced the Bank's 2014 third quarter results.

Board Chairman Leslie Cornejo reported that portfolio quality continues to demonstrate solid performance.Past due plus non-accrual loans achieved a record low of 0.41% of loans outstanding, with credit strength further demonstrated by just $7,638 in net loan losses, year-to-date 2014.

SCVBank continues to maintain a strong capital position with a Tier 1 Leverage Capital Ratio of 11.06%, up from 10.83% at December 31, 2013. Liquidity continues to be very strong as cash, interest bearing deposits at financial institutions and investments totaled 47% of total assets at quarter end.

SCVBank recorded anet loss of $239,000 for thethirdquarter of 2014 compared to a net loss of $25,000 for the third quarter of 2013. Expenses in the third quarter included $150,000 related to the upcoming merger with the Bank of the Sierra, scheduled for the fourth quarter of 2014. The year to date net loss through September 2014 was $368,000 compared to a net loss of $116,000 for the same nine month period in 2013. The net losses are primarily attributable to declining loan balances from 2013 to 2014.

President Cheryl Knight commented that, "Challenges remain due to weak loan demand and very low interest rates; however, loans in process have recently increased and core deposits continue to be very strong.” Chairman Cornejo added that, “The bank continues to seek good quality business and commercial real estate loans in Ventura County and North Los Angeles County. As good quality loans are funded, the financial performance of SCVBank will continue to strengthen.”

Founded in 1998, SCVBank currently operates three branches in Santa Paula, Fillmore, and Valencia. Executive and Loan Offices are located at 866 East Main Street, Santa Paula, Ca. Under its stock symbol of SCVE, SCVBank’s stock is traded through McAdams Wright Ragen,Raymond James & Associates Inc., and Monroe Securities. The Bank’s web site is www.SCVBank.com.

Santa Clara Valley Bank Corporation Headquarters
901 East Main Street
Santa Paula, California93060
(805) 525-1999

FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about Santa Clara Valley Bank (the “Company”), that is intended to be covered by the safe harbor for “forward looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. Forward-looking statements speak only as of the date they are made and we assume no duty to update such statements. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to: lower than expected revenues; credit quality deterioration or a reduction in real estate values could cause an increase in the allowance for credit losses and a reduction in net earnings; increased competitive pressure among depository institutions; the possibility that personnel changes will not proceed as planned; a change in the interest rate environment reduces net interest margins; asset/liability repricing risks and liquidity risks; legal matters could be filed against the Company and could take longer or cost more than expected to resolve or may be resolved adversely to the Company; general economic conditions, either nationally or in the market areas in which the Company does or anticipates doing business, are less favorable than expected; environmental conditions, including natural disasters and drought, may disrupt our business, impede our operations, negatively impact the values of collateral securing the Company’s loans and leases or impair the ability of our borrowers to support their debt obligations; the economic and regulatory effects of the continuing war on terrorism and other events of war, including the conflicts in the Middle East; legislative or regulatory requirements or changes adversely affecting the Company’s business; and changes in the securities markets. Additional risks and uncertainties relating to the proposed transaction with Sierra Bancorp and the Bank of Sierra include, but are not limited to: the ability to complete the proposed transaction, including obtaining regulatory approvals and approvals by the shareholders of the Company; the length of time necessary to consummate the proposed transaction; unexpected costs relating to the proposed transaction; and the potential impact on the institutions’ respective businesses as a result of uncertainty surrounding the proposed transaction. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, the Company’s results could differ materially from those expressed in, implied or projected by such forward-looking statements. The Company assumes no obligation to update such forward-looking statements.

SIERRA, BANK OF SIERRA AND SANTA CLARA VALLEY BANK
MERGER ANNOUNCEMENT

On July 17, 2014, an announcement was issued that the Company, Sierra Bancorp, Bank of Sierra had entered into an Agreement and Plan of Consolidation (the “Consolidation Agreement”) pursuant to which Sierra Bancorp will acquire the Company through a series of steps whereby Santa Clara Valley Bank will be merged in to Bank of Sierra (the “Merger”). Bank of Sierra will survive the Merger and will continue the commercial banking operations of the combined bank following the Merger. Under the terms of the Consolidation Agreement, holders of Company common stock will receive $6.00 per share for each share of Company common stock. The holders of all outstanding shares of Company preferred stock, will receive, in exchange for those shares, $1,000.00 per share. The Merger is subject to customary closing conditions, including regulatory and shareholder approvals.
In connection with the proposed Merger the Company will hold a meeting of its shareholders to approve the Merger on October 29, 2014. A definitive proxy statement was mailed to the shareholders of the Company on or about September 22, 2014, seeking the required stockholder approval of the Merger by Company security holders. Before making any voting decision, security holders of the Company are urged to carefully read the entire proxy statement as well as any amendments or supplements thereto, because it contains important information about the proposed transaction. Company security holders will be able to obtain the proxy statement free of charge from the Company by writing to Santa Clara Valley Bank, N.A., 901 East Main Street, Santa Paula, California 93060, Attention: Cheryl Knight, President and Chief Executive Officer.
The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of the Company in connection with the transaction. Information about the directors and executive officers of the Company is set forth in the proxy statement.
Additional information regarding the interests of these participants and other persons who may be deemed participants in the Merger may be obtained by reading the proxy statement regarding the Merger.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.