Civic BanCorp Reports Second Quarter Financial Results.

Business Editors

OAKLAND, Calif.--(BUSINESS WIRE)--July 20, 2000

CIVIC BANCORP (NASDAQ:CIVC) and its subsidiary, CivicBank of Commerce reported financial results for the quarter ended June 30, 2000.

Net income for the second quarter ended June 30, 2000, including one-time merger related expenses associated with the merger with East County Bank, increased 3.3% to $1,420,000 from $1,375,000 for the same period of 1999. Diluted earnings per share increased to $.28 for the quarter ended June 30, 2000 compared to $.27 for the same quarter of 1999 as adjusted for the 5% stock dividend paid to shareholders of record on April 12, 2000. Diluted earnings per share on a cash basis, excluding the tax adjusted intangible amortization related to the recent merger with East County Bank, was $.30 per share for the second quarter. Return on average assets (ROA) was 1.29% for the second quarter of 2000 compared to the same quarter of the prior year at 1.35%. Return on average equity (ROE) was 12.17% for the quarter ended June 30, 2000 compared with 12.21% in 1999.

Included in the second quarter were one-time noninterest expenses associated with the merger with East County Bank which approximated $350,000 on an after-tax basis. Such expenses included an accrual for executive severance payments, an accrual for executive employment contract payments, conversion programming costs, and other one-time expenses. Excluding such one-time items, pro-forma earnings would have approximated $1.77 million, or $.35 per share. Pro-forma return on assets would have increased to 1.45% and pro-forma return on equity would have increased to 14.45%.

"We are very pleased with the growth in our core earnings for the second quarter," commented Chairman and CEO Herb Foster. "With these merger related expenses behind us, we believe we are well positioned to leverage the merger with East County Bank, the strong regional economy and the continued loan demand in the marketplace."

Total assets at June 30, 2000 increased to $509 million compared to $378 million as of June 30, 1999, an increase of $131 million or 35%. Total loans increased $117 million, or 45%, to $379 million at June 30, 2000 from $262 million at June 30, 1999. Total deposits were $435 million and $329 million at June 30, 2000 and 1999, respectively, an increase of $106 million or 33%. The balances at June 30, 2000 include the impact of the merger with East County Bank that was effective on February 29, 2000. The merger was accounted for under the purchase method of accounting. On an unaudited basis, at February 29, 2000, East County Bank had total assets of $79 million, total loans of $49 million and total deposits of $72 million.

In addition to historical information, certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Factors which might cause such a difference include, but are not limited to interest rate risks, asset quality, general economic conditions, legislative or regulatory changes and increases in personal or commercial customers' bankruptcies. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward looking statements. Readers should carefully review the risk factors described in other documents the Company files from time to time with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 1999 and the Quarterly Reports on Form 10-Q filed in fiscal 2000.

CivicBank of Commerce, the Bay Area's leading independent business bank, serves companies, their owners and the professional community through offices located in Oakland, San Francisco, San Leandro, Palo Alto, Fremont, Rossmoor, Antioch, Concord and Walnut Creek.

                             CIVIC BANCORP
                    Consolidated Financial Results
                              (Unaudited)

(In Thousands Except Shares and Per Share Amounts)

                        For Six Month Period      For the Quarter
                           Ended June 30,          Ended June 30,
                           2000      1999         2000        1999
                       ---------------------      ----------------
RESULTS OF OPERATIONS:

Income Summary:
Net Interest Income      $ 13,855  $ 10,367    $  7,467    $  5,293
Provision for Loan Losses     375        90         225          45
Noninterest Income            878       553         526         311
Noninterest Expense         9,611     6,540       5,462       3,329

Income Before Income Taxes  4,747     4,290       2,306       2,230
Provision for Income Taxes  1,822     1,640         886         855
                         --------  --------    --------    --------
Net Income               $  2,925  $  2,650    $  1,420    $  1,375
                         ========  ========    ========    ========

Basic Earnings Per
 Common Share            $   0.59  $   0.53    $   0.29    $   0.28
Diluted Earnings Per
 Common Share            $   0.58  $   0.52    $   0.28    $   0.27

Weighted Average Shares
 Outstanding Used To
 Compute Basic Earnings
 Per Common Share         4,937,078 4,973,480   4,953,533   4,986,531
Dilutive Effects of
 Stock Options              110,230   146,104     110,826     139,626
                          ---------- --------   ---------   ----------
Total Weighted Average
 Shares Outstanding Used
 To Compute Diluted
 Earnings Per Common
 Share                    5,047,308 5,119,584   5,064,359   5,126,157
                          --------- ---------   ---------   ----------


Selected Ratios:
Return on Average
 Assets (annualized)           1.29%     1.35%       1.16%       1.42%
Return on Average
 Equity (annualized)          12.17%    12.21%      11.60%      12.45%
Average Equity to
 Average Assets               10.58%    11.07%      10.04%      11.43%
Net Charge-offs to
 Average Loans
 (annualized)                  0.07%     0.11%       0.03%       0.59%


SELECTED BALANCE SHEET INFORMATION:
                                                    June 30,
                                                2000         1999
                                                ------------------

Total Assets                               $  508,994    $  377,948
Total Loans                                   378,504       261,646
Total Deposits                                435,393       329,183
Total Shareholders' Equity                     49,434        44,201
Foreclosed Assets                                 164          --
Book Value per Share                       $     9.98    $     8.90
Allowance for Loan Losses to Total Loans         1.64%         1.68%
Common Shares Outstanding                   4,953,533     4,966,168