Consequently, the growth in its balance sheet was accompanied by a 24-percent year-on-year increase in net interest income to P2.9 billion against the previous year?s P2.4 billion.

Security Bank also reported that total operating income for the first semester of 2009 grew by P434.8 million or 12.4 percent to P3.9 billion over the prior year driven primarily by net interest income, albeit tempered by an 11.5 percent decrease in other income which stood at P1.0 billion.

With the reduction in interest rate volatility, trading and securities gains reflected a 12-percent year-on-year growth which was offset by a 21-percent reduction in foreign exchange gains and service charges.

Operating expenses for the period amounted to P2.0 billion.

The combined results of its revenue and expense performance resulted in a net income for the first half of P1.4 billion, producing a respectable eight-percent growth from the same period last year.

?Our focus on building our core business while prudently managing risks in our earnings stream have been successful. Our sound balance sheet gives us the leverage to explore different opportunities. While signs of a global economic recovery still appear tentative, we maintain our guarded optimism for the country and the bank,? said Security Bank president and chief executive officer Alberto S. Villarosa on their first half results.

Security Bank?s non-performing loans ratio of 1.4 percent for the period remains among the best in the industry.

The bank likewise set aside provisions of 306 percent cover for these non-performing loans.

The bank?s fundamentally sound capital base is reflected in its capital adequacy ratio (CAR) of 14.5 percent, even after having called P3.0 billion of its outstanding Lower Tier 2 Capital in the first quarter of 2009

Security Bank chief financial officer Carlos M. Borromeo said balance sheet health remains to be a top priority and can be seen in first half 2009 performance, showing off an increase in resources of 10 percent to P140 billion from June 2008?s P127.7 billion.

"The 21-percent increase in the loan portfolio shows the bank?s steady shift in its balance sheet profile as loans now account for 47.4 percent of total assets versus 43.0 percent recorded a year ago. This result was achieved while improving asset quality indices and capital strength,? he said.

The transaction marked the first time that a Philippine-based MFI secured a sizable and five-year tenor funding facility.

Security Bank President and Chief Executive Officer Alberto S. Villarosa explained that SB Capital's role as wholesale arranger of funds signifies its commitment to service the underserved microfinance sector.

It also gives recognition to CARD Inc. and its financially viable business model that taps into the economic capabilities of the Filipino workers especially women entrepreneurs.

Among MFIs in the Philippines, CARD Inc. has the widest client reach, largest branch network with a near nationwide coverage, and the biggest loan portfolio that provides direct financing, research, development work and economic evaluation in pursuit of its social mission.

"CARD's experience and expertise in the microfinance sector and Security Bank's strength as an established financial institution has paved the way for other microfinance institutions to prepare for more sophisticated fund-raising activities," added Villarosa.

The local banking industry provided their overwhelming interest as shown by the oversubscription of the corporate notes issue.

The financial institutions that subscribed to the notes were Allied Bank Corporation, Banco De Oro Unibank, Inc., BDO Private Bank, Inc., BDO Leasing and Finance, Inc., Rizal Commercial Banking Corporation and Security Bank Corporation.

Washington D.C.-based Grameen Foundation acted as technical adviser to CARD for the transaction while Security Bank Trust Division was designated as facility agent.

Commenting on the results, K. Stephen Morris, President and CEO, said, "At this point in time, we do not see signs of an economic recovery. Our market area continues to experience high levels of unemployment and under employment. We do not anticipate a recovery until the job market improves."

"Jefferson Security Bank has an excellent liquidity position in that its ratio of loans, net of reserve, to deposits was 63.8% as of September 30, 2009. This ratio is considerably lower than almost all other members of the bank's national peer group, and thus exemplifies our ability to meet the cash needs of our borrowers and depositors. Moreover, Jefferson Security Bank maintains capital ratios that exceed 'well capitalized' regulatory requirements. Collectively these standards of measurement give management confidence that Jefferson Security Bank will weather the current financial storm as it has others since its founding in 1869."

Total assets for the Bank as of September 30, 2009 were $248.5 million, which is an increase of $9.3 million, or 3.9%, from total assets as of September 30, 2008 of $239.2 million. Loans, net of reserve, as of September 30, 2009 were $144.3 million, which is a decrease of $6.3 million, or 4.2%, from loans, net of reserve, as of September 30, 2008 of $150.6 million. Deposits as of September 30, 2009 were $226.1 million, which is an increase of $15.3 million, or 7.3%, from deposits as of September 30, 2008 of $210.8 million. As of September 30, 2009, book value per share was $64.49, which is an increase of $0.19 or 0.3% from book value per share of $64.30 as of September 30, 2008.

Jefferson Security Bank, founded in 1869, is a community bank engaged in the general banking business in Berkeley County and Jefferson County, West Virginia, and Washington County, Maryland. The Bank currently has six offices.

This press release may contain forward-looking statements, as defined by federal securities laws, which may involve significant risks and uncertainties. The statements are based on estimates and assumptions made by management in conjunction with other factors deemed appropriate under the circumstances. Actual results could differ materially from current projections. Readers are encouraged to read filings the Bank has made with the Federal Deposit Insurance Corporation for additional information.

Offices:  105 East Washington Street, Shepherdstown, WV (304-876-9000)
          7994 Martinsburg Pike, Shepherdstown, WV (304-876-2800)
          873 East Washington Street, Charles Town, WV (304-725-9752)
          277 Mineral Drive, Suite 1, Inwood, WV (304-229-6000)
          1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900)
          103 West Main Street, Sharpsburg, MD (301-432-3900)

SOURCE: Jefferson Security Bank

Jefferson Security Bank 
K. Stephen Morris, President and CEO 
304-876-9025

Net Income for third quarter of 2009 was $136,421 or 4.6 cents per share

Total Assets stood at $308.4 million, an increase of 29.8%

Total Deposits increased by $69 million or 35.6%, to $263.2 million

Total Loans grew to $257 million an increase of $66 million or 34%

Total Risk based capital ratio of 15.70%, well in excess of the Regulatory standard for well capitalized institutions

Asset Quality remains strong, with no delinquent or non performing loans as of September 30, 2009

"While on a national basis the economy is showing some signs of improvement, the Inland Empire continues to reflect a significant level of economic uncertainty," commented James A. Robinson, Chairman and Chief Executive Officer. "Accordingly, we are committed to insuring that our loan loss reserve is well positioned to insure that our bank emerges from this cycle well positioned to play a role in the regions recovery."

For the third quarter, the Bank reported net income of $136,421 or 4.6 cents per share, an improvement from the $124,438 or 4.2 cents per share profit reported for the second quarter of 2009. The Bank earned $188,857 for the quarter ended September 30, 2008. For the nine months ended September 30, 2009, the bank reported a $226,510 net loss or 7.6 cents per share. The much publicized FDIC special assessment, increases in the bank's FDIC and DFI regular assessments, as well as the bank's continued and ongoing efforts to proactively strengthen its balance sheet by increasing its loan loss reserves contributed to these results.

"Our exceptionally strong capital position, our team of experienced and seasoned bankers and our significant commitment to this area has enabled us to gain market share in each of the markets we serve," commented Robinson. "We appreciate, respect and value the confidence that our clients, our shareholders and the community at large has in the bank and in our team," he concluded.

Security Bank of California opened for business on June 20, 2005. It was founded by several prominent Inland Empire business leaders who shared a common vision that a bank should make decisions based on local knowledge and expertise and be committed to the continued growth of the markets it serves. The bank offers personalized services and products to businesses and individuals through its three full service branch offices in Riverside, San Bernardino and Redlands.

Security California Bancorp is traded on the over the counter bulletin board under the symbol SCAF.OB.

For more information visit the bank at www.securitybankca.com

Security Bank of California Forward Looking Statement Disclaimer -
General Form
This release may contain forward-looking statements that are subject
to risks and uncertainties. Such risks and uncertainties may include
but are not necessarily limited to fluctuations in interest rates,
inflation, government regulations and general economic conditions,
and competition within the business areas in which the Bank is
conducting its operations, including the real estate market in
California and other factors beyond the Bank's control. Such risks
and uncertainties could cause results for subsequent interim periods
or for the entire year to differ materially from those indicated.
Readers should not place undue reliance on the forward-looking
statements, which reflect management's view only as of the date
hereof. The Bank undertakes no obligation to publicly revise these
forward-looking statements to reflect subsequent events or
circumstances.

Condensed Income Statements
(Unaudited)
                                                       2009 Results
                                                       3rd Qtr        2nd Qtr        1st Qtr.         Year to Date
Interest income                                        $   3,077,125  $   2,915,854  $  2,517,593     $    8,510,572
Interest expense                                           499,180        488,478       525,440            1,513,098
Net interest income                                        2,577,945      2,427,376     1,992,153          6,997,474
Provision for credit losses                                322,545        292,000       672,294            1,286,839
Net interest income after provision for credit losses      2,255,400      2,135,376     1,319,859          5,710,635
Other income                                               357,860        367,418       385,832            1,111,110
Non interest expense                                       2,316,441      2,198,087     2,502,198          7,016,727
Net income (loss) before taxes                             296,819        304,707       (796,508  )        (194,982  )
Provision for income taxes                                 160,398        180,269       (309,139  )        31,528
Net income (loss) after taxes                          $   136,421    $   124,438    $  (487,369  )   $    (226,510  )
Earnings (Loss) Per Share
Earnings (Loss) Per Share                              $   0.05       $   0.04       $  (0.16     )   $    (0.08     )
Weighted Average Number of Shares                          2,988,716      2,988,716     2,988,716          2,988,716

Condensed Balance Sheets
(Unaudited)
                                            As of September 30
                                                                              Increase (Decrease)
                                            2009             2008             Amount              %
Assets
Cash, cash equivalents and investments      $ 48,087,674     $ 43,712,912     $   4,374,762       10  %
Loans, net of unearned income                 256,973,631      191,137,052        65,836,579      34  %
Less: Allowance for loan losses               (3,566,000  )    (2,321,091  )      (1,244,909 )    54  %
Net Loans                                     253,407,631      188,815,961        64,591,670      34  %
Premises and equipment, net                   2,204,142        1,669,295          534,847         32  %
Accrued interest and other assets             4,698,518        3,351,240          1,347,278       40  %
Total Assets                                $ 308,397,965    $ 237,549,408    $   70,848,557      30  %
Liabilities
Deposits:
Noninterest-bearing deposits                $ 85,379,845     $ 69,931,939     $   15,447,906      22  %
Interest-bearing deposits                     177,824,480      124,178,599        53,645,881      43  %
Total deposits                                263,204,325      194,110,538        69,093,787      36  %
Brokered deposits                             -                -
Other borrowings - FHLB                       3,000,000        7,000,000          (4,000,000 )    -57 %
Accrued interest and other liabilities        606,764          744,922            (138,158   )    -19 %
Total Liabilities                             266,811,089      201,855,460        64,955,629      32  %
Shareholders' Equity                          41,586,876       35,693,948         5,892,928       17  %
Total Liabilities and Shareholders' Equity  $ 308,397,965    $ 237,549,408    $   70,848,557      30  %
Asset Quality
Non Performing Loans                        $ -              $ -
Loans Past Due 90 Days or More              $ -              $ -
Other Real Estate Owned                     $ -              $ -
Allowance for Loan Lease Losses (ALLL)      $ 3,566,000      $ 2,321,091
ALLL as a Percent of Loans                    1.39        %    1.21        %
Regulatory Capital Ratios
Total Capital to Risk Weighted Assets
SBOC                                          15.70       %    16.83       %
Regulatory - Well Capitalized                 10.00       %    10.00       %
Tier 1 Capital to Risk Weighted Assets
SBOC                                          14.45       %    15.74       %
Regulatory - Well Capitalized                 6.00        %    6.00        %
Tier 1 Capital to Average Total Assets
SBOC                                          14.37       %    16.47       %
Regulatory - Well Capitalized                 5.00        %    5.00        %

SOURCE: Security Bank of California

Security Bank of California 
Michael Vanderpool, President, COO 
951-368-2267 
mvanderpool@securitybankca.com 
or 
Thomas M. Ferrer, EVP, CFO 
951-368-2268 
tferrer@securitybankca.com