ALBANY, OR--(Marketwire - Aug 2, 2012) - Willamette Community Bank (OTCBB: [ WMCB ])

Highlights:

• Record six month net income of $207.5 thousand
• Total loans increased $5.57 million, deposits up $2.6 million in first half of 2012
• Non-performing loans to total loans of 0.70% and no loans over 30 days past-due
• No reported loan charge-offs year-to-date

[ Willamette Community Bank ] (OTCBB: [ WMCB ]), today reported record net income of $207 thousand for the six months ended June 30, 2012 or $0.31 per basic share compared to net income of $139 thousand and $0.21 per basic share for six months ended June 30, 2011. This reflects an earnings increase of 49% and 48% earnings per share improvement. Year-over-year results reflect strong top line revenue growth of 10.15% with overhead expenses growing 2.30% with no reported loan losses. The company's efficiency ratio improved to 78.9% June 30, 2012 vs. 85.0% for six months ended June 30, 2011.

"Since taking decisive action in the second quarter 2011 to aggressively improve top line revenue growth, refine our current business model to control operating expenses and selectively pursue new and enhanced lending relationships, the quality and performance of our banking franchise has markedly improved," said Dave Wood, President and CEO. Wood further stated that "the results reflect our focus on three key Willamette Community Bank fundamentals: the way our team members work together to serve customers 'Like No Other', the way we manage risk and active interest rate management on both sides of the balance sheet. We are very pleased with the results but even more satisfied that we continue to help so many local businesses, our agricultural community and consumers meet their fundamental financial needs. While many banks continue to shrink their balance sheets, [ WillametteCommunity Bank ] continues to lend and support our local communities."

Wood continued: "Tangible ROE is showing signs of improvement 5.49% as compared to 3.94% in the same period last year. Also, over the same period, ROA improved to 0.50% from 0.34% with a book value per share of $10.29."

Balance Sheet, Asset Quality and Capital Strength

Total assets were $83 million at June 30, 2012. This was a 3.2% growth from total assets of $80.4 million at June 30, 2011. Net loans after allowance for loan losses at June 30, 2012 were $64.4 million compared to $57.4 million at June 30, 2011. The company's net loans to deposit ratio, including held for sale, was 87% at June 30, 2012.

Total deposits at June 30, 2012 were $74.5 million compared to $73.1 million at June 30, 2011. Core deposits represent 74% of total deposits with the company having no reliance on brokered deposits. "Our strategic goal is to simply build core deposits needed to support loan growth," explained Wood. "Our net interest margin was a very respectable 4.45% and we have lowered our cost of funds to 0.74%, however, we continue to experience margin pressure in the continuing low rate environment. The focus on managing our interest rate risk will remain a priority well into the foreseeable future given on-going Federal Reserve pronouncements."

The company's ratio of non-performing loans to total loans of 0.70% vs. 0.91% at June 30, 2011. The company reported no loans over 30 days past due as of June 30, 2012 and no reported charge-offs.

The bank reported a tier 1 leverage capital ratio of 9.9% and total risk-based capital ratio of 12.7%, both of which significantly exceed minimum regulatory standards for a well-capitalized financial institution. On the capital front, the bank closed a capital raise May 31, 2012 after issuing 141,961 new shares with a net, after expenses, capital contribution of $751 thousand. Wood stated that the additional capital "will support the further growth of our business by accommodating customers of larger institutions that continue to seek a local community bank alternative."

[ Willamette Community Bank ] is a traditional full service community bank, opened May 2003, and is headquartered in Albany, Oregon. With a second office located in Lebanon, Oregon.

This press release contains certain forward-looking information about [ Willamette Community Bank ] (WMCB) 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, and include statements related to the bank's outlook. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of WMCB. WMCB cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to, revenues that are lower than expected and credit quality deterioration which could cause an increase in the provision for credit losses.