Bank of the Sierra & Taft National Bank Announce Definitive Agreement for Bank of the Sierra to Acquire Taft National Bank.

Business Editors

PORTERVILLE & TAFT, Calif.--(BUSINESS WIRE)--Dec. 15, 2000

James C. Holly, president & CEO for Bank of the Sierra (Nasdaq:BSRR), jointly with Charles E. Smith, president of Taft National Bank, announced today they have signed a Definitive Agreement for Bank of the Sierra to acquire Taft National Bank for $7.5 million cash, or approximately $28 for each share of Taft National Bank common stock.

Taft National Bank is a two branch financial institution, with locations in Taft and Bakersfield. As of Sept. 30, 2000, Taft National had total assets of $57 million, total deposits of $51 million and total loans of $37 million. Smith noted, "As we contemplated a sale of our financial institution, we searched for a buyer who had basically the same philosophy and mission as we have had over the last 17 years. We feel that Bank of the Sierra was the best fit for our customers. It will afford them a broader array of products and services, with a continued emphasis on community banking and local decision-making."

Bank of the Sierra is the largest independent bank headquartered in the South San Joaquin Valley, and operates sixteen branch offices in the four counties between Bakersfield and Fresno. In addition, they have five real estate centers, two agricultural credit centers and a bank card center. More information about Bank of the Sierra is available on the Bank's web site www.bankofthesierra.com.

"The addition of the two Taft National Bank branches will give us a stronger position in Kern County," noted Holly. "We are looking forward to integrating these new locations and their customers into our banking family. We plan to provide the same type of personal, hometown service they have come to expect."

The acquisition, scheduled to be completed by mid-April 2001, requires approval from banking regulators and shareholders of Taft National Bank.

This press release may include forward-looking statements that involve inherent risks and uncertainties. Bank of the Sierra cautions readers that a number of important factors could cause actual results to differ materially from those in any forward-looking statements. These factors include economic conditions and competition in the geographic and business areas in which Bank of the Sierra operate, inflation or deflation, fluctuations in interest rates, legislation and governmental regulation. Additional risk factors are discussed in the Bank's Form 10-K.