Americorp Posts Record Earnings For 1999.

Business Editors

VENTURA, Calif.--(BUSINESS WIRE)--Feb. 22, 2000

Americorp, the parent company of Ventura County-based American Commercial Bank (OTCBB:AICA), reported fourth-quarter 1999 net income of $1.35 million.

For the full year ended Dec. 31, 1999, net inconem rose to $3.3 million as compared with the $1.2 million reported for the 12 months ended Dec. 31, 1998. Americorp's President and Chief Executive Officer, Gerald J. Lukiewski, stated that the Bank "benefited from a very strong local economy, which enabled the loan portfolio to increase by 17.5 percent to $179 million."

In addition to the revenue increase achieved from strong loan growth, the company realized operational efficiencies from the merger with the former Channel Islands Bank, the subsequent elimination of merger-related expenses which impacted fourth quarter '98 results, and the recognition of a tax credit carry forward, which added to the fourth quarter '99 results.

On the liability side of the balance sheet, the company achieved strong growth in non-interest-bearing demand deposits, which increased by 10 percent at Dec. 31, 1999 to $70 million, as compared with the prior year end. Total deposits declined 3.6 percent to $210 million due to the impact of competing higher yielding equity investments on interest-bearing deposits.

Loan fundings were supported by a reduction in lower yielding assets and other borrowings, primarily from the Federal Home Loan Bank.

For the 12 months ended Dec. 31, 1999, Americorp's return on equity and return on assets were 16.3 percent and 1.4 percent respectively, compared with 6.5 percent and 0.5 percent, respectively, for the 12 months ended Dec. 31, 1998.

Diluted earnings per share in 1999 were $1.49, representing an increase of 171 percent over the $.55 earnings per share reported for the same period in 1998.

Lukiewski added that the year was particularly challenging as a result of merger-related issues and Y2K, but commented, "The employees rose to the occasion by maintaining the focus on personalized service to the customers."

Americorp's total capital at Dec. 31, 1999 grew to $23 million, a 13 percent increase from the $20 million reported at Dec. 31, 1998.

Americorp's stock split 2 for 1 in May of 1999, and the company has paid out a cash dividend to shareholders during the past 65 consecutive quarters.

American Commercial Bank operates six branches in the cities of Ventura, Oxnard, and Camarillo. The Bank is also a preferred SBA lender, and has a full-service mortgage department serving all of Ventura County.