Central California Bank to Acquire Sentinel Community Bank Branches; Will Become Subsidiary Of Western Sierra Bancorp.

Business Editors

CAMERON PARK, Calif.--(BUSINESS WIRE)--Nov. 15, 2001

Western Sierra Bancorp, a multi-bank holding company made up of four community banks including Sentinel Community Bank in Sonora, announced the signing of a definitive agreement with Central California Bank, headquartered in Sonora. Central California Bank will operate under a separate charter and will acquire the four branches of Sentinel Community Bank located in Tuolumne County. The completion of the merger is expected during the first quarter of 2002.

Fred Rowden, President and CEO of Central California Bank will continue in his present position. Assets of the combined Sentinel Community Bank and Central California Bank will exceed $150 million while the total assets of Western Sierra Bancorp will surpass $600 million.

Gary D. Gall, President and CEO of Western Sierra Bancorp stated, "There are great synergies between Sentinel Community Bank and Central California Bank. Fred Rowden's management style is dynamic, a true Community Banker who focuses on providing extraordinary customer service. In addition, our customers will gain access to branches in Turlock and Modesto as well as a proposed branch in Antioch, all under the charter of Central California Bank. Central California Bank will continue to operate as a locally owned and operated bank with local directors and Management team."

Future plans will include the consolidation of perceived overlapping branch locations. At the time of the merger, the combined bank will have a total of 8 locations. Fred Rowden commented that, "The combined talent and experience of employees in both Community Banks should create a Premiere Central California Financial Institution. Customers will have the availability of an extended portfolio of consumer and business product lines as well as a great place to do their banking and will be able to take advantage of the expanded Western Sierra Bancorp locations throughout Central and Northern California. This merger enables us to better position our bank to expand and take a more competitive roll in marketing our Banking products while building on our recent successes. We will have the ability to respond to the financial needs of the areas that we serve with more dynamics."

The shareholders of Central California Bank will receive a cash-stock combination valued at over $9 million. The agreement is subject to both shareholder and regulatory approval. Management anticipates the acquisition will become accretive to shareholders in the third quarter of 2002.