Santa Cruz County Bank Reports Third Quarter Results

Deposits Increase $20.5 Million

SANTA CRUZ, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Santa Cruz County Bank,
(OTC Bulletin Board: SCZC), a locally owned and operated full-service
community bank headquartered in Santa Cruz County, announced today its
financial results for the third quarter-ended September 30, 2009.

Third Quarter Highlights:

For the Bank's third quarter-ended September 30, 2009 compared to prior
quarter-ended June 30, 2009:
-- Total deposits increased by $20.5 million, 9%, to $239.2 million
-- Gross loans decreased by $2.9 million, -2%, to $150.2 million

-- Total assets increased by $20.9 million, 9%, to $262.0 million

The Bank reported after tax net income of $42,872 for the quarter-ended
September 30, 2009, a 35% decrease compared to $66,243 for the quarter-ended
June 30, 2009. On a quarter to quarter basis, comparing September 30, 2008 to
September 30, 2009, the Bank's after tax net income increased by $623,492 or
107%.

The Bank allocated $402,000 for loan losses for the third quarter compared to
$1,420,541 for the third quarter in 2008. At third quarter end, the Bank's
allowance for loan losses was $2.5 million or 1.7% of gross loans, consistent
with the prior quarter. The Bank recorded net charge offs of $435 thousand for
the quarter. As of September 30, 2009, the Bank's total non-performing assets
were less than 1% of total assets compared to 1.12% of total assets at June
30, 2009.

Net interest income improved to $2.6 million for the quarter-ended September
30, 2009 as compared to $2.5 million for the quarter-ended June 30, 2009. On a
quarter to quarter basis, comparing September 30, 2008 to September 30, 2009,
the Bank's net interest income increased $317,241 or 14%.

The Bank's non-interest bearing deposits represented 60% of total deposit
growth during the quarter and represent 32% of total deposits as of September
30, 2009.

David V. Heald, President and Chief Executive Officer stated, "The extended
economic stress on real estate, retail, and tourism requires continued active
management of our customer base and the possible effects on our loan
portfolio. We have remained very liquid investing our funds in quality assets.
Our low cost of funds, due to our high ratio of non interest-bearing deposits
to total deposits, places us in a position to manage risk in this economic
environment and greatly benefit from improvement in credit markets. We
consider economic conditions continually to determine our provisions and
strategies to minimize risk and provide value for our shareholders."

Year to Year Highlights for Third Quarter:
For the Bank's third quarter-ended September 30, 2009 compared to the third
quarter-ended September 30, 2008:
-- Total deposits increased by $43.0 million, 22%, to $239.2 million
-- Gross loans increased by $11.2 million, 8%, to $150.2 million

-- Total assets increased by $45.0 million, 21%, to $262.0 million

About Santa Cruz County Bank
Headquartered in Santa Cruz, Santa Cruz County Bank is a full service bank
serving the banking needs of individuals and businesses throughout Santa Cruz
County. The Bank operates five full-service banking offices, a Business
Lending Office and two self-serve banking centers, all of which have received
a Green Business Certification Award by the Monterey Bay Area Green Business
Program. The Bank's full-service banking offices are located in Aptos,
Capitola, Santa Cruz, Scotts Valley and Watsonville. The Bank commenced
operations on February 3, 2004 in Santa Cruz.

Santa Cruz County Bank's common stock is listed on the Over the Counter (OTC)
Bulletin Board under the stock symbol SCZC. More information on the Bank may
be obtained through its website: www.sccountybank.com or by calling (831)
457-5000.

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.

Selected Financial Data (unaudited)
Change
------
Quarter ended Quarter ended
9/30/09 6/30/09 $ %
------------- ------------- --- ---

Balance Sheet

Total assets $262,035,379 $241,166,471 $20,868,908 9%
Gross loans 150,210,505 153,125,700 (2,915,195) -2%
Allowance for loan
losses 2,545,379 2,573,712 (28,333) -1%
Non interest-
bearing deposits 75,715,764 63,345,521 12,370,243 20%
Total deposits 239,203,613 218,706,526 20,497,087 9%
Shareholders'
equity 19,452,637 19,052,975 399,662 2%

Income Statement

Interest income 2,948,926 2,870,110 78,816 3%
Interest expense 376,941 385,148 (8,207) -2%
------- -------
Net interest
income 2,571,985 2,484,962 87,023 4%

Provision for loan
losses 401,908 178,142 223,766 126%
Non-interest income 537,675 518,866 18,809 4%
Non-interest
expense 2,622,623 2,718,055 (95,432) -4%
--------- ---------
Net income
(loss) before
taxes 85,129 107,631 (22,502) -21%
Income tax expense
(credit) 42,257 41,388 869 2%
------ ------
Net income
(loss) after
taxes $42,872 $66,243 (23,371) -35%
======= =======

Ratios
Net interest margin 4.31% 4.58%
Equity capital-to-
total assets 7.4% 7.9%

Change
------
Restated*
Quarter ended
9/30/08 $ %
------------- --- ----

Balance Sheet

Total assets $217,021,060 $45,014,319 21%
Gross loans 138,982,747 11,227,758 8%
Allowance for loan
losses 2,950,484 (405,105) -14%
Non interest-
bearing deposits 63,735,823 11,979,941 19%
Total deposits 196,218,915 42,984,698 22%
Shareholders'
equity 18,686,207 766,430 4%

Income Statement

Interest income $2,906,106 42,820 1%
Interest expense 651,362 (274,421) -42%
-------
Net interest
income 2,254,744 317,241 14%

Provision for loan
losses 1,420,541 (1,018,633) -72%
Non-interest income 496,505 41,170 8%
Non-interest
expense 2,348,316 274,307 12%
---------
Net income
(loss) before
taxes (1,017,608) 1,102,737 108%
Income tax expense
(credit) (436,988) 479,245 110%
--------
Net income
(loss) after
taxes $(580,620) 623,492 107%
=========

Ratios
Net interest margin 4.59%
Equity capital-to-
total assets 8.6%

SOURCE Santa Cruz County Bank

David V. Heald, President, Chief Executive Officer, ext. 2116,
dheald@sccountybank.com, or Vic Davis, Senior Vice President, Chief Financial
Officer, ext. 2217, vdavis@sccountybank.com, both of Santa Cruz County Bank,
+1-831-457-5003