Seacoast Commerce Bank Announces First Quarter Profit, Asset Growth and Credit Improvement

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CHULA VISTA, Calif.--(Business Wire)--
Seacoast Commerce Bank (OTCBB: SCCB) today announced its unaudited results of
operations for the first quarter-ending March 31, 2010. The Bank reported a
pre-provision expense ("PPE") operating profit of $203 thousand for the quarter
versus a PPE operating loss of $139 thousand for the same period last year; a
significant improvement. The Bank`s net profit after provisions for loan losses
in the first quarter of 2010 was $53 thousand, compared to a net loss of $434
thousand for the same period last year.

Selected highlights for the first quarter of 2010 versus the first quarter of
2009:

* Asset growth of $31.7 million, or 39.4%, to a record $112.3 million;
* Liquidity growth, defined as cash, due from banks and investment securities,
of $14.6 million, or 92.1%, to $30.4 million;
* Loan growth of $15.5 million, or 23.7%, to a record $81.1 million;
* SBA loan portfolio growth of $9.5 million, or 149%, to a record $15.8 million;

* Deposit growth of $34.4 million, or 59.2%, to $92.5 million;
* Core deposit growth, defined as demand deposits, savings, money market
accounts and certificates of deposit under $100 thousand of $23.7 million;
* Core deposits make up 68.2% of the Bank`s total deposit base;
* Wholesale funding reduced 77% from $18.4 million to $4.2 million.

Selected other financial highlights:

* Brokered deposits reduced 57.3% to only $4.2 million, or 3.8% of assets;
* Allowance for Loan and Lease Losses ("ALLL") of $2.65 million, or 3.26% of
loans;
* Non-performing loans reduced 41.7% standing at only $1.8 million;
* ALLL to non-performing loans of 148%;
* Non-performing assets to Tier 1 Capital plus ALLL (Texas Ratio) of 26.4%;
* Construction loans completely eliminated.

The Bank initiated a private placement to raise additional capital on February
22, 2010 with the proceeds targeted to support the Bank`s growth. Through March
31, 2010, the Bank had raised $3.2 million, of which $1.2 million or 37.4% was
contributed by the Bank`s Directors and Officers. All $3.2 million was taken
into capital at quarter-end with additional capital expected prior to the end of
the second quarter. The Bank has always been "well capitalized" as validated by
the FDIC, and with the additional capital in place, the Bank`s capital ratios
were as follows:

FDIC "Well Capitalized" Level
Tier 1 Capital Ratio: 10 .90% 5 .00%
Tier 1 Risk-Based Capital Ratio: 14 .74% 6 .00%
Total Risk-Based Capital Ratio: 16 .02% 10 .00%

As previously reported, the Bank made a substantial commitment to small business
lending through its new SBA Division in an effort to assist small business
owners in purchasing real estate while other banks have decreased or stopped
lending in that area. The Bank`s SBA Division has produced $11.5 million in new
loans to small businesses in the first quarter of 2010, with U.S. Small Business
Administration guaranteeing up to 90% of the loan balances. The Bank sold $9.9
million of those loans and recorded a $960 thousand gain on that sale. As
reported by the U.S. Small Business Administration, Seacoast Commerce Bank was
ranked the #1 lender in the San Diego District, the 4th largest lender in the
State, and the 24th largest SBA lender in the Nation, on an SBA year-to-date
basis, when ranked by total dollars approved; a testament to our commitment to
helping small businesses.

Richard M. Sanborn, President & Chief Executive Officer, commented, "We had a
very good quarter on most all fronts. We raised an additional $3.2 million in
new capital; we reduced our problem loans; we earned a profit for our
shareholders, both pre-provision and post-provision expense; we increased our
liquidity and virtually eliminated our wholesale (brokered) deposits and
borrowings." Sanborn continued, "I`m most proud of our team which is working
diligently to help many business owners obtain financing to purchase real estate
for their businesses. Contrary to what`s being reported in the press about the
banking industry, we are lending to small businesses," Sanborn concluded.

Allan W. Arendsee, Chairman of the Board, stated, "We have a great team at
Seacoast, and their hard work and persistence is having a tremendous impact on
our Bank. I am proud of the effort everyone is making to return our bank to
profitability and I`m especially pleased with our focus on increasing
shareholder value," Arendsee concluded.

Seacoast Commerce Bank is a business bank operating in San Diego, California,
with loan production offices in Orange County, Los Angeles; and Sacramento, CA;
Bellevue, Washington; and Phoenix, Arizona. For more information on the bank
please visit our website at www.sccombank.com or contact Richard M. Sanborn,
President and Chief Executive Officer at 619-409-5762.

Certain statements in this press release, including statements regarding the
anticipated development and expansion of the Bank`s business, and the intent,
belief or current expectations of the Bank, its directors or its officers, are
"forward-looking" statements (as such term is defined in the Private Securities
Litigation Reform Act of 1995). Because such statements are subject to risks and
uncertainties, actual results may differ materially from those expressed or
implied by such "forward-looking" statements. These risks and uncertainties
include, but are not limited to, risks related to the local and national
economy, the Bank`s performance and regulatory matters.

Seacoast Commerce Bank
Selected Financial Data - Unaudited (000)

For the Quarter Ended %
03/31/2010 03/31/2009 Change
Balance Sheet Items
Liquidity 30,365 15,809 97.7 %
Gross Loans 81,091 65,547 23.7 %
Total Deposits 92,484 58,077 59.2 %
Total Assets 112,256 80,555 39.4 %
Shareholders' Equity 11,411 12,849 (11.2 %)

Income Statement Items
Total Interest Income 1,334 990 34.7 %
Total Interest Expense 401 376 6.6 %
Net Interest Income 933 613 52.2 %

Provision for Loan Losses 150 295 (49.2 %)
Non-Interest Income 1,150 181 535.4 %
Non-Interest Expense 1,881 933 101.6 %

Net Income (Loss) 53 (434 ) 112.2 %

Seacoast Commerce Bank
Richard M. Sanborn
President and Chief Executive Officer
619-409-5762
www.sccombank.com

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