BWC Financial Corp. Announces Second Quarter & First Half Earnings.

Business Editors & Banking Writers

WALNUT CREEK, Calif.--(BUSINESS WIRE)--July 19, 2002

James L. Ryan, Chief Executive Officer and Chairman of the Board of BWC Financial Corp. and its subsidiaries Bank of Walnut Creek and BWC Mortgage Services, announced net income for the period ending June 30, 2002.

Ryan reported net income of $2,142,000 or $0.59 diluted earnings per share for the six months ended June 30, 2002, compared to income of $2,597,000 or $0.68 diluted earnings per share for the same period in 2001. Earnings for first half 2002 represent 1.07% return on average assets (ROA) and 10.97% return on average equity (ROE), compared to 1.45% return on average assets (ROA) and 14.67% return on average equity for first half 2001.

For second quarter 2002, net income was $1,061,000 or $0.29 diluted earnings per share, compared to net income of $1,114,000 or $0.29 diluted earnings per share for the same period in 2001. Return on average assets for second quarter 2002 was 1.06% and return on average equity was 11.14% compared to second quarter 2001 return on average assets of 1.23% and return on average equity of 12.48%.

Total assets of the Corporation at June 30, 2002 were $409,032, 000, compared to total assets of $370,666,000 at June 30, 2001.

Additional details may be found in the Summary of Consolidated Financial Results for second quarter and first half 2002:

                         BWC Financial Corp.
                    Consolidated Financial Results
           In thousands except share and per share amounts


                                   Quarter Ended     Year to Date
SUMMARY INCOME STATEMENT             June 30,          June 30,
                                     --------          --------
                                 2002     2001      2002      2001
                                ------------------------------------
Interest Income                 $6,244   $7,810   $12,871   $16,036
Interest Expense                 1,269    2,307     2,650     4,883
                                ------------------------------------
Net Interest Income              4,975    5,503    10,221    11,153
Provision for Credit Losses        300      375       600       750
Non-interest Income              2,373    2,166     4,768     4,138
Non-interest Expenses            5,210    5,360    10,638    10,086
Minority Interest                  171      166       361       302
                                ------------------------------------
EBIT                             1,667    1,768     3,390     4,153
Income Taxes                       606      654     1,248     1,556
                                ------------------------------------
Net Income                      $1,061   $1,114    $2,142    $2,597

Basic EPS                        $0.31    $0.33     $0.63     $0.75
Diluted EPS                      $0.29    $0.29     $0.59     $0.68


SELECTED PERFORMANCE RATIOS
Return on Average Assets          1.06%    1.23%     1.07%     1.45%
Return on Average Equity         11.14%   12.48%    10.97%    14.67%
Net Interest Margin
 to Earning Assets                5.38%    6.53%     5.56%     6.71%
Efficiency Ratio (Bank only)     66.04%   65.90%    66.61%    61.34%




SUMMARY BALANCE SHEET
In thousands                                    June 30,
Assets:                                   2002           2001
                                   ---------------------------
Cash and Equivalents                 $  42,345      $  26,856
Investments                             85,348         67,187
Loans                                  275,293        270,153
Allowance for Credit Losses             (5,724)        (5,097)
Other Assets                            11,770         11,567
                                   ---------------------------
Total Assets                        $  409,032     $  370,666

Deposits                            $  351,741     $  324,877
Other Borrowings                        15,298          6,578
Other Liabilities                        2,678          3,049
                                   ---------------------------
Total Liabilities                      369,717        334,504
Equity                                  39,315         36,162
                                   ---------------------------
Total Liabilities and Equity        $  409,032     $  370,666

The Board of Directors of BWC Financial Corp. recently declared a 10% stock dividend to shareholders of record as of July 15, 2002. Founded in 1980, Bank of Walnut Creek headquarters and main office are at 1400 Civic Drive, Walnut Creek. Additional branch offices are in Orinda, San Ramon, Danville, Pleasanton, and Livermore with regional business centers in Fremont and San Jose. BWC Mortgage Services, with headquarters in San Ramon, has mortgage consultants in each of the Bank's branch offices.

Nasdaq: BWCF

http://www.bowc.com