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RIVERSIDE, Calif.--([ BUSINESS WIRE ])--Security California Bancorp (aCompanya) (OTCBB:SCAF) and its wholly owned subsidiary, Security Bank of California (aBanka) reported today that its Total Assets grew by 25% to $447 million, when compared to the first quarter of last year. Additionally, Total Loans grew 7% to $306 million and Total Deposits increased by $94 million to $384 million, when compared to March 31, 2011 results.

"Overall, we are pleased with our continued growth and are looking forward to the opportunities that our two new locations a" Orange and Irwindale a" present"

The Company reported net income before taxes of $734 thousand, which after an additional Provision for Loan and Lease Losses and the costs associated with acquisition of the Bankas new Orange office, was reduced to a net loss of $761 thousand.

aGiven the languid economic forecast in each of the markets we serve, and our strong capital position, we prudently elected to add to our reserves,a commented James A. Robinson, Chairman and CEO of the Bank and the Bank Holding Company.

aOverall, we are pleased with our continued growth and are looking forward to the opportunities that our two new locations a" Orange and Irwindale a" present,a added Robinson.

Growth: Total Assets of the Company surged by $89 million or 25% to $447 million at first quarter closing. The organic growth was augmented by the assumption of $28 million in deposits in February 2012 that provided an avenue for the Bank into the Orange County market. The following are the changes in major balance sheet accounts that are instrumental in sustaining core earnings and provide stable liquidity:

Total Short Term Investments with correspondent banks moved up by $14 million or 87% to $31 million.

Total Investments in Securities grew to $47 million or 141% from $33 million. The securities portfolio consists of government agency and agency sponsored debenture bonds and mortgage backed securities.

Total Loans organically grew by $21 million or 7% to $306 million, concentrated in the C & I segment of the loan portfolio in line with the business strategy of the Bank.

Total Deposits surged to an impressive level of $384 million or growth of $94 million, of which $66 million or 70% represents internally generated growth and $28 million or 30% was from a branch acquisition. Of the total deposits, $154 million were Non Interest Bearing DDAs, the growth of which was $37 million or 28% from a level of $117 million.

Loan Portfolio Profile: The Bankas performing loans amounted to $298 million or 97% of the total loan portfolio, and only one delinquent loan account. The Allowance for Loan and Lease Losses (aALLLa) of $6.037 million was 1.97% of the total loans. The Companyas Texas Ratio continues to be excellent at 11.87%. (Texas Ratio is calculated as follows: Non-performing assets + 90 day past due loans divided by Tangible Equity + Allowance for loan losses)

Operating Performance: The Companyas net income before taxes in the first quarter is $734 thousand, which after the additional provision resulted in a net loss before tax benefit of $1,267 thousand and eventually a net loss after tax benefit of $761 thousand.

Net Interest Income is $3.881 million, 14% higher than the same period last year, which is driven by volume growth and an overall favorable net yield.

Non-Interest Income is $394 thousand, lower by $167 thousand compared to last year, primarily due to the timing of boarding SBA gain and referral premium fees.

Non-Interest Expense is $3.073 million, higher by $283 thousand than last year, principally due to restructuring costs related to the acquisition in early 2012 of a branch operation in Orange

County and the full expense effect in the first quarter of the Irwindale Loan Production Office that was established in last quarter of 2011.

Capital Adequacy: The Company with a capital of $62 million is well capitalized with satisfactory cushions over regulatory requirements. The Tier 1 leverage ratio is 14.57%; Tier 1 risk based ratio is 17.92% and Total risk based ratio is 19.18% compared to regulatory minimum benchmarks of 5.00%, 6.00% and 10.00%, respectively.

Security Bank of California is a wholly owned subsidiary of Security California Bancorp, which is traded on the Over the Counter Bulletin Board under the symbol SCAF.OB. It offers personalized banking services to businesses and individuals through its full service offices in Riverside, San Bernardino, Redlands and Orange. It also has a Loan production Office in Irwindale.

Visit us at [ www.securitybankca.com ]

Security California Bancorp
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 Bankas 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 managementas 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.