Security Bank of California Reports Net Income of $136,421 for the Third Quarter

Security Bank of California, wholly owned and sole subsidiary of Security California Bancorp (OTCBB:SCAF), announced its financial results for the third quarter ended September 30, 2009.

Highlights of the Bank's performance, as of September 30, 2009, compared to September 30, 2008 include:

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

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