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Orange County Business Bank Announces 22% Increase in Net Income

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^{Published in Business and Finance on Friday, January 30th 2009 at 8:43 GMT, Last Modified on 2009-01-30 08:44:54 by Market Wire}  

NEWPORT BEACH, Calif.--([ BUSINESS WIRE ])--Orange County Business Bank (the "Bank") (OTCBB:OCBB) announced financial results for the twelve months ended December 31, 2008.

The Bank's net income increased 22.0% from $1.04 million in 2007 to $1.27 million for 2008. This increase in net income was the result of continued growth of quality assets for the Bank during one of the most tumultuous years in banking history.

At December 31, 2008, the Bank's assets totaled $252.6 million, while total deposits, primarily in checking and money market accounts, totaled $172 million as the Bank's client base continued to grow.

Total loans increased from $115.9 million at December 31, 2007 to $162.3 million as of December 31, 2008, an increase of $46.4 million or by more than 40%.

As banks experience growth in their loan portfolios, they must ensure that their "Allowance for Loan and Lease Losses" ("ALLL" or "reserves") keeps track in accordance with the growth and general risk of the loan portfolio. Because of the Bank's large increase in its loan portfolio, the Bank increased its reserves significantly in 2008. While in the long term loan growth is generally beneficial to the Bank, adding to reserves increases expenses at the time the loans are made. In 2008, the Bank increased its ALLL by $1.18 million reflecting our strong loan growth in 2008.

Orange County Business Bank is focused on locally owned and operated businesses. As such, the Bank does not, (1) make home mortgage loans, subprime mortgages, residential tract construction loans nor does it invest in (2) Fannie Mae or Freddie Mac Preferred Stock or any non-Government guaranteed/sponsored agencies.

The Bank's capital ratios continue to demonstrate the financial strength of the Bank by exceeding all regulatory guidelines for ‘well-capitalized' institutions at December 31, 2008.

As one of the most well capitalized banks in Southern California, the Bank continues to offer substantial resources to the business banking community in Orange County as it has since its inception. The Bank continues to increase its business banking market share while also continuing to build its reputation as a service-oriented and sound financial institution.

Orange County Business Bank offers complete relationship banking services for locally owned and operated businesses, professional practices and commercial/industrial companies of Orange County and adjacent markets. The Bank provides services that include a broad selection of depository as well as business and commercial real estate financing products uniquely designed for each client. The Bank, which opened for business on December 26, 2002, maintains its administrative offices at 4675 MacArthur Court, Suite 200, Newport Beach. The Bank's website is [ www.ocbusinessbank.com ].

This press release includes ‘forward-looking' statements within the meaning of Section 27A of the Securities Act. All of the statements contained in this press release, other than statements of historical fact, should be considered forward-looking statements, including but not limited to, any statements which may concern (i) the Bank's strategies, objectives and plans for expansion of its operations, product and services, and growth of its portfolio of loans, deposits and investments, (ii) the Bank's beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the Bank, (iii) the Bank's beliefs as to the adequacy of the allowance for loan losses, and (iv) the Bank's beliefs and expectations of the future operating results. Although the Bank believes the expectation reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All subsequent written and oral forward-looking statements by or attributable to the Bank or persons acting on its behalf are expressly qualified in their entirety by this qualification. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results. The Bank undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.