NorCal Community Bancorp Announces Fourth Quarter 2012 Profit and Full Year Results

  NorCal Community Bancorp Announces Fourth Quarter 2012 Profit and Full Year
  Results

Business Wire

ALAMEDA, Calif. -- January 31, 2013

NorCal Community Bancorp (the “Company”) (NCLC), parent company for Bank of
Alameda, today reported a fourth quarter profit of $603,000, or $0.06 per
diluted share, compared to net income of $205,000, or $0.02 per diluted share
for the fourth quarter in 2011. For the year ended December 31, 2012 the
company reported a net loss of $987,000, or ($0.09) per diluted share,
compared to net income of $12,000 for the same period in 2011.

Return on average assets and average equity for the three months ended
December 31, 2012 was 0.87% and 12.08%, respectively, compared to 0.32% and
3.89% for the same period in 2011. Included in the fourth quarter of 2012 is
the reversal of approximately $300,000 in an over-accrual of FDIC deposit
insurance assessments. During 2012 the Bank had been assessing its payment of
FDIC insurance using a 2009 prepayment fee schedule. This accrual was reviewed
in December 2012 and corrected to reflect the actual assessment fees incurred
during 2012.

Credit quality significantly improved at December 31, 2012. Non-performing
assets at December 31, 2012 were $2.4 million, or less than one percent of
total assets. This compares with $7.7 million at September 30, 2012 and $9.5
million at December 31, 2011. President and CEO, Stephen G. Andrews stated,
“In 2012 we substantially reduced problem assets and we experienced little
further deterioration in our portfolio, signaling improvement in our market
area and positioning the Company for improved revenue potential.”

Adversely classified assets as a percentage of Tier 1 Capital plus the
Allowance for Loan and Lease Losses was 31% at December 31, 2012, compared to
79% at December 31, 2011. Mr. Andrews further commented, “The adversely
classified ratio is a strong indicator of the health of a bank’s loan
portfolio. At the height of the banking crises the Company’s adversely
classified asset ratio was in excess of 151% at March 31, 2010.”

As of December 31, 2012, total assets were $265.7 million; up 7.1% or $17.6
million compared to December 31, 2011 total assets of $248.1 million. Total
loans and leases increased $2.0 million, or 1.2% to $167.8 million at December
31, 2012 compared to $165.8 million at December 31, 2011. Total deposits
increased $18.2 million, or 8.4% to $236.0 million at December 31, 2012,
compared to $217.8 million at December 31, 2011.

In closing, Mr. Andrews stated, “Our Company has emerged from these
unprecedented times with a strong customer base, increasing loan demand and a
loyal and talented group of employees. The Board and management would like to
thank all of our customers, shareholders and employees for their continued
support.”

A copy of the Company’s information and disclosure statement pursuant to
Securities and Exchange Commission Rule 15c2-11 can be found on the home page
of the Company’s website at www.bankofalameda.com under the Investor Relations
section.

Cautionary Statement: This release may contain certain forward-looking
statements that are subject to risks and uncertainties that could cause actual
results and events to differ materially from those stated herein. Words such
as “anticipate,” “believe,” “estimate,” “expect,” “should,” “intend,”
“project,” and words or phrases of similar meaning are intended to identify
forward-looking statements. Management’s assumptions and projections are based
on their anticipation of future events and actual performance may differ
materially from that projected.

NorCal Community Bancorp
FINANCIAL HIGHLIGHTS
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
                                                                     
                 Three Months Ended                     Twelve Months Ended
                 December 31,     December 31,          December 31,     December 31,
FOR THE PERIOD   2012             2011                  2012             2011
Total interest   $ 2,538          $ 2,695               $ 10,370         $ 10,512
income
Total interest    153            204                 752            906        
expense
Net interest
income before
provision for      2,385            2,491                 9,618            9,606
loan and lease
losses
Provision for
loan and lease    -              150                 2,650          900        
losses
Net interest
income after
provision for      2,385            2,341                 6,968            8,706
loan and lease
losses
Noninterest        710              259                   2,062            1,032
income
Noninterest       2,492          2,395               10,015         9,636      
expense
Income (loss)
before             603              205                   (985       )     102
provision for
income taxes
Provision for
income tax        -              -                   2              90         
expense
Net Income       $ 603           $ 205                $ (987       )   $ 12         
(loss)
                                                                         
Basic loss per   $ 0.06           $ 0.02                $ (0.09      )   $ -
share
Diluted loss     $ 0.06           $ 0.02                $ (0.09      )   $ -
per share
                                                                         
Average shares     10,610,716       10,610,716            10,610,716       10,612,713
outstanding
Diluted
average shares     10,652,088       10,610,716            10,652,088       10,623,048
for the period
                                                                         
SELECTED
FINANCIAL
RATIOS
(Annualized)
Return on          0.87       %     0.32       %          -0.37      %     0.00       %
average assets
Return on          12.08      %     3.89       %          -4.82      %     0.06       %
average equity
Yield on           3.76       %     4.28       %          3.99       %     4.25       %
earning assets
Cost of funds      0.24       %     0.35       %          0.31       %     0.39       %
Net interest       3.54       %     3.96       %          3.70       %     3.88       %
margin
Efficiency         80.53      %     87.10      %          85.75      %     90.58      %
ratio
Net
charge-offs
(recoveries)
as a
percentage of
average loans      2.22       %     0.19       %          2.35       %     1.19       %
and leases
Loan loss
provision as a
percentage of
average loans      0.00       %     0.37       %          1.59       %     0.56       %
and leases
                                                                         
                                                                         
Financial
Highlights -
Continued
                 As of
                 December 31,     December 31,   %
CONSOLIDATED     2012             2011           Change
BALANCE SHEET
ASSETS
Cash and due
from banks
Non-interest     $ 2,050          $ 1,703        20   %
bearing
Interest           30,323           15,900       91   %
bearing
Investment         62,177           64,136       -3   %
securities
Loans and          167,825          165,843      1    %
leases
Allowance for
loan and lease    (3,549     )    (4,807     ) -26  %
losses
Net loans and      164,276          161,036      2    %
leases
Other real         461              1,844        -75  %
estate
Other assets      6,446          3,510       84   %
TOTAL ASSETS     $ 265,733       $ 248,129     7    %
                                                                         
LIABILITIES
Deposits
Non-interest     $ 73,939         $ 64,694       14   %
bearing
Interest          162,034        153,089     6    %
bearing
Total deposits     235,973          217,783      8    %
Subordinated       8,248            8,248        0    %
debentures
Other             1,439          1,149       25   %
liabilities
TOTAL             245,660        227,180     8    %
LIABILITIES
                                                                         
SHAREHOLDERS'      20,073           20,949       -4   %
EQUITY
TOTAL
LIABILITIES                      
AND
SHAREHOLDERS'    $ 265,733       $ 248,129     7    %
EQUITY
                                                                         
Book value per   $ 1.89           $ 1.97
share
                                                                         
BANK OF
ALAMEDA
REGULATORY
CAPITAL RATIOS
Leverage ratio     9.07       %     11.35      %
Tier 1
risk-based         13.97      %     16.23      %
capital ratio
Total
risk-based         16.90      %     17.50      %
capital ratio
                                                                         
ASSET QUALITY
METRICS
ALLL as a
percentage of      2.11       %     2.90       %
total loans
and leases
Non-performing
assets as a
percentage of
total assets       0.92       %     3.83       %
Non-performing
assets as a
percentage of
total equity +
ALLL (Texas        10.36      %     36.85      %
ratio)

Contact:

NorCal Community Bancorp
Steve Andrews, 510-748-8468
www.norcalcommunitybancorp.net