Bank of Sacramento Reports Third Quarter Earnings.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Oct. 11, 2000

Bank of Sacramento's (OTCBB:BKSO) earnings for the third quarter 2000 were $174,000 or more than double the earnings for the second quarter 2000. Earnings growth was spurred by the continued growth of assets with net loans of $53.9 million exceeding the $50 million mark for the first time.

Deposits during the third quarter ending September 30, 2000 amounted to $72.7 million, which represented a 43% increase ($21.8 million) over the September 30, 1999 figure of $50.9 million.

Net loans of $53.9 million at September 30, 2000 represented a 70% increase ($22.1 million) over the September 30, 1999 net loans figure of $31.8 million.

"The continued growth in loans and deposits has allowed the Bank to improve its profit picture" stated CEO, William J. Martin. "We were most pleased with our third quarter results and are prepared for a hard sprint to the year end!"

The Bank's operating profit for the three months ending September 30, 2000 was $174,000 compared to a (loss) of ($182,000) for the three months ending September 30, 1999. For the first nine months of 2000 operating profit was $298,000 compared to a nine month 1999 (loss) of ($890,000).

The progression of improving quarterly earning results continued for the fourth straight quarter.

                     9/30/00   6/30/00   3/31/00  12/31/99   9/30/99
Net Operating
 Profit/(Loss)      $174,000   $84,000   $40,000   $11,000  ($182,000)
Profit/(Loss)
 in Cents per Share     $.15      $.07      $.04      $.01     ($.16)

Based on reported third quarter earnings and nine-month year to date earnings the Bank's Return on Average Assets and Return on Average Equity for the two periods was:

                   3rd Quarter Ended 9/30/00   9 Months Ended 9/30/00
Return on
 Average Assets           .86%                         .54%
Return on
 Average Equity           7.72%                        4.47%

The Bank's tier one capital at September 30, 2000 stood at $9.3 million and the Bank's leverage capital ratio of 11.56% places Bank of Sacramento by all regulatory standards in a "well capitalized" position.

Martin attributed the Banks upward performance not only to the vitality of the local economy "but more importantly to the hard work and dedication of our staff. We are all looking forward to serving our growing number of outstanding customers in the years to come."

Forward Looking Statement Disclosure

Statements made in this release may constitute Forward Looking Statements within the meaning of the Private Securities Litigation Reform Act of 1995 and any such statements are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include those related to the economic environment, particularly in the region where Bank of Sacramento operates, competitive products and pricing, general interest rate changes and the fiscal and monetary policies of the US Government, credit risk management, regulatory actions, and other risks and uncertainties.

                          BANK OF SACRAMENTO
                         FINANCIAL HIGHLIGHTS
                       (IN THOUSANDS)(UNAUDITED)
CONDENSED
 BALANCE SHEET
                               09/30/2000     09/30/1999     % CHANGE
ASSETS

Cash and due from banks            $2,653         $3,210        -17%
Securities, at fair value          14,373         13,910          3%
Federal funds sold                  8,340          8,285          1%
Net loans                          53,943         31,784         70%
Premises and equipment,
 (net of depreciation)                715            869        -18%

Other assets                        2,285          2,113          8%

TOTAL ASSETS                      $82,309        $60,171         37%


LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
Deposits
Noninterest bearing               $12,573         $6,457         95%
Interest bearing                   60,086         44,464         35%
Total Deposits                     72,659         50,921         43%
Other borrowed funds                  250            250         N.A.
Other liabilities                     242            150         61%

TOTAL LIABILITIES                  73,151         51,321         43%

SHAREHOLDERS' EQUITY
Common stock                       11,444         11,444          0%
Retained earnings                  (2,286)        (2,594)        12%
TOTAL SHAREHOLDERS'
 EQUITY                             9,158          8,850          3%
TOTAL LIABILITIES
 & SHAREHOLDERS'
 EQUITY                           $82,309        $60,171         37%


CONDENSED STATEMENT OF INCOME

                     Results of Operation      Results of Operation
                     Three Months Ending           Year to Date
                   09/30/2000   09/30/1999    09/30/2000  09/30/1999
                   ----------   ----------    ----------  ----------
Net interest
 income                  $925        $504        $2,503     $1,133
Provision for
 possible loan
 losses                   $54          95          $161        245
Net interest income
 after provision for
 possible loan losses    $871         409        $2,342        888

Noninterest income        $34          30          $115         99
Noninterest expense      $732         621        $2,159      1,876
Income before taxes      $174        (182)         $299       (889)
Income taxes              $(0)         --            $1          1

NET INCOME (LOSS)        $174       $(182)         $298      $(890)

Earnings per Share      $0.15      $(0.16)        $0.26     $(0.77)

Return on
 Average Assets          0.86%        N.A.         0.54%       N.A.
Return on
 Average Equity          7.72%        N.A.         4.47%       N.A.