Bank of the Sierra Receives Regulatory Approval of Merger With Sierra National Bank.

Business Editors

PORTERVILLE, Calif.--(BUSINESS WIRE)--May 12, 2000

James C. Holly, President & CEO for Bank of the Sierra (Nasdaq: BSRR), announced that approval has been received from all regulatory agencies for the merger of Sierra National Bank with and into Bank of the Sierra.

This was the final step necessary to allow Bank of the Sierra to move forward with the final phases of the acquisition.

"We are very pleased to have received approval from the regulators," noted Holly. "We can now move forward and finalize our plans for the merger."

At the present time, the acquisition is expected to be completed at the close of business on Friday, May 19, 2000, with the four Sierra National Bank branches re-opening on Monday, May 22, 2000, as Bank of the Sierra. With the addition of these four branches, Bank of the Sierra will become a 16 branch bank, with over $500 million in total assets and over 300 employees.

Bank of the Sierra is the largest independent bank headquartered in the South Valley, and currently operates 12 branch offices in the four counties between Bakersfield and Fresno. In addition, they have five real estate centers, three ag 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.

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.