Civic BanCorp Reports Third Quarter Financial Results.

OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 22, 1998--Civic BanCorp (Nasdaq:CIVC) and its subsidiary, CivicBank of Commerce, reported financial results for the quarter ended Sept. 30, 1998.

Net income for the quarter ended Sept. 30, 1998 increased to $1,775,000 from $1,250,000 for the same period of 1997. Diluted earnings per share increased to $.37 for the quarter ended Sept. 30, 1998 compared to $.26 for the same quarter of 1997.

Return on average assets (ROA) increased to 1.93% for the third quarter of 1998 compared with 1.61% for the same quarter of 1997. Return on average equity (ROE) increased to 17.51% for the quarter ended Sept. 30, 1998 compared with 13.54% in 1997.

Included in the third quarter numbers was a one-time pre-tax gain of $868,000 realized by the disposal of the remaining foreclosed properties owned by the bank and recoveries of other non-performing assets. This resulted in a 65% reduction of the bank's total non-performing assets.

"With the substantial reduction of non-performing assets, we are well positioned to fully focus on meeting the needs of our client base and marketing to new prospects," noted Herbert C. Foster, president and chief executive officer. "Our performance this quarter reflects the continued progress we are making by increasing the bank's profitability while we build a sound capital position for the future."

Total assets at Sept. 30, 1998 were $375 million compared to $314 million as of Sept. 30, 1997. Total loans were consistent at $220 million at Sept. 30, 1998 and 1997. Total deposits increased $55 million or 20% to $328 million at Sept. 30, 1998 from $273 million at Sept. 30, 1997.

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 and could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, interest rate risks, asset quality, general economic conditions, legislative or regulatory changes, increases in personal or commercial customers' bankruptcies and "Year 2000" information systems compliance being more difficult or more expensive to complete than expected. 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, 1997 and the Quarterly Reports on From 10-Q filed by the company in fiscal 1998.

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, Palo Alto, San Jose, Fremont, San Leandro, Walnut Creek and Rossmoor. -0-

                             Civic BanCorp
                    Consolidated Financial Results
                              (Unaudited)
          (In Thousands Except Shares and Per Share Amounts)

                                  For Nine Months     For the Quarter
                                  Ended Sept. 30,     Ended Sept. 30,
Results of Operations:            1998      1997      1998      1997

Income summary:
Net interest income            $  15,015 $  13,733 $   5,147 $   4,838
Provision for loan losses            113        75        38        25
Noninterest income                 1,553       689     1,083       248
Noninterest expense                9,355     8,852     3,217     3,001

Income before income taxes         7,100     5,495     2,975     2,060
Provision for income taxes         2,875     2,070     1,200       810
Net income                     $   4,225 $   3,425 $   1,775 $   1,250

Basic earnings per
 common share                  $    0.92 $    0.74 $    0.39 $    0.27
Diluted earnings per
 common share                  $    0.87 $    0.70 $    0.37 $    0.26

Weighted average shares
 outstanding used to compute
 basic earnings per
 common share                  4,594,379 4,617,485 4,549,859 4,608,850
Dilutive effects of
 stock options                   240,254   262,585   199,252   230,265
Total weighted average shares
 outstanding used to compute
 diluted earnings per
 common share                  4,834,633 4,880,070 4,749,111 4,839,115

Selected Ratios:
Return on average assets
 (annualized)                      1.64%     1.53%     1.93%     1.61%
Return on average equity
 (annualized)                     14.06%    12.94%    17.51%    13.54%
Average equity to
 average assets                   11.66%    11.83%    11.03%    11.88%
Net charge-offs to
 average assets (annualized)       0.05%     0.26%     0.00%     0.33%


Selected Balance Sheet Information:

                                              1998          1997

Total assets                               $  374,844    $  313,900
Total loans                                   219,635       220,269
Allowance for loan losses                       4,375         4,638
Total deposits                                328,254       273,377
Total shareholders' equity                     41,519        37,171
Foreclosed assets                                --             570
Other non-performing assets                       494         3,465
Book value per share                       $     9.14    $     8.06
Allowance for loan losses to total loans         1.99%         2.11%
Common shares outstanding                   4,541,692     4,610,679