Civic BanCorp reports fourth quarter and year-end financial results.

OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 19, 1995--Civic BanCorp (NASDAQ: CIVC) and its subsidiary, CivicBank of Commerce, reported financial results for the quarter ended Dec. 31, 1994, and for the full year ended Dec. 31, 1994.

Net income for the quarter ended Dec. 31, 1994, was $682,000 compared to $119,000 for the same period a year earlier. Earnings per share were 16 cents for the quarter ended Dec. 31, compared to 3 cents for the fourth quarter, 1993. Return on average assets (ROA) was 1.07 percent for the quarter ended Dec. 31, 1994, compared with .17 percent in 1993. Return on average equity was 10.61 percent for the quarter ended Dec. 31, 1994, compared with 2.43 percent in 1993.

In March 1993, the company announced its intention to sell the mortgage division and on Sept. 30, 1994, CivicBank of Commerce sold mortgage servicing rights and the related assets of the mortgage division. "The sale of the mortgage division represents the final phase of the Restructuring Plan we implemented in the third and fourth quarters of 1993," President and Chief Executive Officer Herbert Foster stated.

Net income for the year ended Dec. 31, 1994, was $1.8 million, compared to a loss of $12.9 million for the prior year. Earnings per share for the year ended Dec. 31, 1994, were 41 cents per share compared to a loss per share of $4.65 a year earlier. "The past year has been a transitional year for our Company. We have sold or liquidated the bulk of non-performing assets, primarily other real estate owned, that impacted the earnings in 1993," noted Foster. At Dec. 31, 1994, other real estate owned was $600,000, compared to $5.4 million at Dec. 31, 1993, a decrease of 89 percent. "We have positioned the Company's return to profitability and we are excited about our prospects for 1995," Foster continued.

Net interest income for the quarter ended Dec. 31, 1994, was $3.7 million, up 27 percent from $2.9 million in 1993.

The provision for loan losses for the quarter ended Dec. 31, 1994, was $150,000, compared to $150,000 for the same period a year ago. The provision for loan losses for the year ended Dec. 31, 1994, was $375,000, compared to $825,000 for the year ended Dec. 31, 1993. As a result of the improvement in asset quality, the bank reduced the loan loss provision in 1994. The allowance for loan losses at Dec. 31, 1994, was $3.2 million and represented 2.1 percent of total loans outstanding compared to $4.4 million or 2.5 percent of total loans outstanding at Dec. 31, 1993.

Total loans at Dec. 31, 1994, were $154.7 million, a decrease of $17.8 million or 10.3 percent from Dec. 31, 1993. Total deposits at Dec. 31, 1994, were $233.8 million, a decrease of $3.7 million or 1.5 percent from Dec. 31, 1993. -0-

                         Civic BanCorp
                  Consolidated Financial Results
      (amounts in thousands, except share and per share data)

Results of Operations:

                                  12 months          Three months
                                ended Dec. 31,       ended Dec. 31,
                               1994       1993      1994      1993

Net interest income          $13,420    $12,574   $ 3,654   $ 2,878
Provision for loan losses        375        825       150       150
Non-interest income            1,505      1,955       206       824
Non-interest expense          12,068     26,162     3,003     3,582

Income (loss) from
 continuing operations
 before income taxes           2,482    (12,458)      707       (30)
Provision for income taxes        25        ---        25       ---
Net income (loss) from
 continuing operations         2,457    (12,458)      682       (30)
Discontinued operations         (647)      (434)      ---       149
Net income (loss)            $ 1,810   $(12,892)  $   682   $   119

Net income (loss) per
 common share from continuing
 operations                  55 cents   $(4.49)    16 cents  $(.01)
Net income (loss) per
 common share from
 discontinued operations      (.14)       (.16)        ---     .04
Net income (loss) per
 common share                41 cents   $(4.65)    16 cents  $ .03
Weighted average shares
 outstanding                4,454,784 2,773,273 4,448,033 3,544,641

Selected Ratios:
                                  12 months       Three months
                                ended Dec. 31,    ended Dec. 31,
                               1994       1993   1994      1993

Return on average assets
 (annualized)                  .70%     (4.18%)   1.07%     0.17%
Return on average equity
 (annualized)                 7.25     (51.83)   10.61      2.43
Average equity to average
 assets                       9.69       8.07    10.07      7.17
Net charge-offs to
 average loans                 .96        .77      .80      (.01)

Selected balance sheet information:

                                Dec. 31,
                             1994       1993

Assets                       $ 261,060    $263,598
Loans                          154,716     172,496
Deposits                       233,831     237,508
Other real estate owned            600       5,389
Shareholders' equity            26,045      24,231
Book value per share          $ 5.86       $ 5.45
Common shares outstanding   4,447,945    4,447,643
-0-

CONTACT: Civic BanCorp

Herbert C. Foster, 510/836-6500