Capital Corp of the West Announces 38% Increase in First Quarter Fully Diluted EPS.

Business Editors

MERCED, Calif.--(BUSINESS WIRE)--April 10, 2000

Capital Corp of the West (the "Company"), quoted on Nasdaq as CCOW (Nasdaq:CCOW), reported a 38% increase in consolidated EPS for the quarter ending March 31, 2000 over the same 1999 Quarter.

Consolidated earnings were $1,514,000 or $.33 per share for the quarter compared to earnings of $1,151,000 or $.24 per share for the same 1999 quarter. Cash earnings per share, defined as earnings before amortization of intangibles, for the second quarter were $1,712,000 or $.37 per share. Annualized return on average assets and return on average equity were 1.08% and 13.73% for the quarter compared with .94% and 10.56% for the comparable 1999 quarter.

"We are pleased with the quarter results and the upward trend in quarterly earnings over the last five consecutive quarters," stated Tom Hawker, CEO of the Company. "Our Central California franchise continues to grow stronger and larger in that we have increased our asset size by $93 million since a year ago," continued Hawker. "Also, this is the first full quarter of enhanced margins and expense reductions gained from the fourth quarter 1999 integration of our former subsidiary, Town and Country Finance and Thrift, into our wholly owned Subsidiary County Bank," stated Dale McKinney, CFO of the Company.

The first quarter 2000 earnings showed an $363,000 increase over those of the comparable 1999 quarter due primarily to a $1,192,000 improvement in net interest income. The increase in net interest income was driven by a $70,962,000 increase in average interest earning asset growth. The net interest margin increased to 5.48% for the three months ending March 31, 2000 which compares favorably with the 5.28% achieved during the same period in 1999. The increase in the provision for loan losses of $256,000 is due to increased growth within the loan portfolio. Other expenses increased $347,000 due primarily to increases in salaries and benefits of $292,000 that were the result of management and support staff increases necessary to accommodate company growth.

The Company's loan loss reserves stood at $6,792,000 or 1.95% of total loans as of March 31, 2000. Nonperforming assets totaled $2,704,000 or 0.46% of total assets and nonperforming loans stood at $2,314,000 or 0.67% of total loans. The loan loss reserves totaled 293.57% of nonperforming loans. This compares with loan loss reserves of $5,383,000 or 1.91% of total loans as of March 31, 1999. As of March 31, 1999, nonperforming assets totaled $2,456,000 or 0.50% of total assets, nonperforming loans totaled $2,209,000 or 0.78% of total loans and the loan loss reserves totaled 243.68% of nonperforming loans.

The Company's capital at March 31, 2000 stood at $45,264,000 compared with $43,796,000 as of March 31, 1999. Book value and tangible book value per share totaled $10.00 and $8.92 as of March 31, 2000. Both book value and tangible book value as of March 31, 2000 are being impacted negatively $.59 per share due to the required mark-to-market accounting adjustment for securities classified, for accounting purposes, as "available for sale." The Company's tangible leverage capital ratio stood at 7.74% at March 31, 2000, compared with 7.89% as of March 31, 1999.

In addition to historical information, this release includes certain forward looking statements regarding events and trends which may affect the Company's future results. Such statements are subject to risks and uncertainties that could cause the Company's actual results to differ materially. These factors include general risks inherent to commercial lending; risks related to asset quality; risks related to the Company's dependence on key personnel and its ability to manage existing and future growth; risks related to competition; risks posed by present and future government regulation and legislation; and risks resulting from federal monetary policy.

Capital Corp of the West, a bank holding company established November 1, 1995, is the parent company of County Bank, with more than 20 years of service as "Central California's Community Bank." Currently County Bank has sixteen branch offices serving the communities of Fresno, Madera, Mariposa, Merced, Stanislaus, Tulare and Tuolumne counties. For further information about the Company's financial performance, contact Tom Hawker, President & Chief Executive Officer at 209/725-2276, or R. Dale McKinney, Chief Financial Officer, at 209/725-7435.

Capital Corp of the West
Consolidated Balance Sheets (unaudited)
At March 31, 2000 & 1999
(Dollars in thousands)

                                                 2000           1999
Cash & noninterest-bearing
 deposits in other banks                     $  24,614      $  23,833
Federal funds sold & time
 deposits in other banks                        12,290         13,250
Investment securities                          168,506        142,224
Loans, gross                                   347,730        281,822
 Less: allowance for loan losses                (6,792)        (5,383)
Loans, net                                     340,938        276,439
Premises and equipment, net                     13,071         13,199
Intangible assets                                4,871          5,664
Other assets                                    22,595         18,926
TOTAL ASSETS                                 $ 586,885      $ 493,535

Deposits:
 Noninterest-bearing demand and NOW          $ 152,347      $ 133,071
 Savings                                       177,365        181,338
 Time                                          182,216        128,319
Total deposits                                 511,928        442,728

Borrowed funds                                  25,395          3,754
Other liabilities                                4,298          3,257
TOTAL LIABILITIES                            $ 541,621      $ 449,739

Shareholders' equity:
 Common shares outstanding:
  4,525,982 at 03/31/00 and
  4,607,102 at 03/31/99                      $  35,743         37,142
Retained earnings                               12,256          6,785
Accumulated other
 comprehensive (loss) income                    (2,735)          (131)
Total shareholders' equity                      45,264         43,796
TOTAL LIABILITIES &
 SHAREHOLDERS' EQUITY                        $ 586,885      $ 493,535

Capital Corp of the West
Consolidated Statements of Income

                         For the Three Months   For the Twelve Months
                            Ending Mar. 31,       Ending Dec. 31,
                            2000       1999       1999       1998

Interest income          $11,233    $ 8,943    $39,361    $34,614
Interest expense           4,304      3,206     14,040     13,634
Net interest income        6,929      5,737     25,321     20,980
Provision for
 loan losses                 763        507      2,659      3,903
Other income               1,147      1,379      5,089      4,838
Other expenses             5,143      4,796     20,538     18,244
Income before
 income taxes              2,170      1,813      7,213      3,671
Provision for
 income taxes                656        662      2,104        930
NET INCOME               $ 1,514    $ 1,151    $ 5,109    $ 2,741

                               Three     Three     Twelve    Twelve
Capital Corp of the West       Months    Months    Months    Months
Selected Financial Data        Ended     Ended     Ended     Ended
                             03/31/00  03/31/99   12/31/99 12/31/98

Basic Earnings Per Share      $   .34   $   .25    $  1.12   $  .60
Diluted earning per share     $   .33   $   .24    $  1.09   $  .58

Annualized Return on:
Average Assets                   1.08%     0.94%       .99%     .60%
Average Equity                  13.73%    10.56%     11.86%    6.48%
Net Interest Margin              5.48%     5.28%      5.50%    5.17%
Net Charge-offs  to
 Average Loans                   0.15%    (0.04)%     0.29%    1.22%

                                        03/31/00       03/31/99

Book Value Per Share                  $   10.00       $   9.51
Tangible Book Value Per Share         $    8.92       $   8.28
Leverage Capital Ratio                     7.74%          7.89%
Nonperforming Loans
 to Total Loans                            0.67%          0.78%
Allowance for Loan
 Losses to Total Loans                     1.95%          1.91%