Celebrating Its 10th Anniversary With a Three for One Stock Split, the Verdugo Banking Co. Reports Third Quarter Financial Results.

Business Editors

GLENDALE, Calif.--(BUSINESS WIRE)--Oct. 18, 2001

The Verdugo Banking Co. today reported results for the third quarter, as well as for the nine-month period ended Sept. 30, 2001.

Net earnings for the quarter were $353,000 and for the nine months were $1,178,000, the latter representing a 27 percent increase over the similar period of 2000. The major factor for this excellent performance was the strong 25 percent year-to-year growth in the loan portfolio.

With deposits increasing by 23 percent over the prior year, the bank ended the quarter with total footings of $139,307,000. Post stock split, fully diluted earnings per share stood at 59 cents, a 26 percent increase from the third quarter of 2000, while the book value increased by 19 percent to $6.33.

"Solid growth in the earlier part of the year has enabled us to weather the continuing economic slide," stated Ray Dumser, president and chief executive officer.

"And, with nine interest rate cuts this year, while our margin has been severely tested, we have been able to stay above the 5.25 percent level even today. That fact, in addition to our focus on expense controls, has enabled us to create a solid base of core deposits and quality loans which should serve us well during these troubled economic times."

The Verdugo Banking Co., the only locally owned and managed community bank in Glendale, is located at 400 N. Brand Blvd.

For questions concerning this news release, contact Maria Albert or Bob Prout at 818/549-1000.