Security Bank of California, wholly owned and sole subsidiary of Security California Bancorp (OTCBB: SCAF), announced its financial results for the year ended December 31, 2009.

Highlights of the Bank’s performance for the year ended December 31 2009 include:

Net income of $1.7 million, on a pre-provision, pre-tax, up 21% over the same period last year

Total Assets increased 31.7%, to $314.7 million

Total Loans grew 31% or $64 million to $271.5 million

Total Deposits grew $86.9 million or 47.1% to $271.5 million

Total Risk based Capital of 14.46% remains in excess of the Regulatory standard for a well capitalized institution

The Bank opened its third office in Redlands

For the year ended December 31, 2009, the company recognized a loss of $2.159 million or 72 cents per share, as compared to net profit of $611,120 or 20 cents per share in 2008. The loss was driven primarily by proactive additions to the bank’s loan loss reserve, an unanticipated increase in FDIC Deposit Insurance premiums as well as expenses associated with the opening of the Bank’s third office in Redlands, in July of 2009.

“While the bank did report a net loss for 2009, it is important to understand the impact that a number of non-recurring, non-core items had on our performance,” commented James A. Robinson, Chairman and Chief Executive Officer. “The continued weakness in our economy throughout the state as well as nationally, punctuated by our region’s high unemployment and underemployment rates, continues to stress our clients and their businesses,” continued Robinson. “Accordingly, we have added $5.132 million to our loan loss reserve this year to address this extremely challenging financial environment. While it is disappointing to report a loss, excluding these items, our performance has held up well.

“As we have consistently stated, we remain committed to insuring that our loan loss reserve is robust so that our bank emerges from this cycle well positioned to continue playing a role in our region’s recovery,” he added. “We appreciate, respect and value the confidence that our clients, our shareholders and the community at large have in our bank and our team.”

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
Security California Bancorp
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.

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