County Bank Announces Plan to Streamline Operations.

MERCED, Calif.--(BUSINESS WIRE)--June 24, 1996--County Bank, a subsidiary of Capital Corp of the West (CCOW), announced its implementation plan to streamline operations and improve customer service.

The program includes a voluntary separation package in which all of the 130 employees of County Bank were given an opportunity to accept a compensation package, based upon their years of service to the bank. To date, 10 employees of the Bank have accepted the package.

As a result the Bank will take a one-time expense in the second quarter to recognize the cost of the packages of approximately $175,000 pre tax, or an after tax reduction to earnings of $112,000 or eight cents per share. The period in which the voluntary separation package may be accepted ends June 28, 1996.

It is anticipated that the liability to be incurred will increase between now and June 28, 1996, however, the amount cannot be accurately estimated at this time. The compensation provision will reduce second quarter earnings but at present is not expected to have a continuing effect in later periods.

The package was just one of the recommendations made by an efficiency study done over the last several months by an outside consulting firm and County Bank employees. The goal of the program was to develop ways to streamline services and improve customer service as much as possible, some 200 to 300 suggestions were included in the study.

The suggestions range from eliminating unnecessary paperwork, modifying employee hours such as placing the greater number of tellers on duty during peak periods and greater use of existing technology.

"We look forward to a more empowered and responsive work force and to make clear improvements to the Bank's efficiency targets. By implementing this program now, by the end of 1996, the Bank should have about the same numbers of employees as it had at the end of 1995 and yet the Bank will have three additional branches. The one-time expense in the second quarter should set the stage for improved efficiency results in the second half of 1996 and beyond," said Tom Hawker, County Bank's President and CEO.

Capital Corp of the West is a bank holding company which was established Nov. 1, 1995. It is the parent company to: Capital West Group, a newly formed financial and management consulting subsidiary, and County Bank, Merced County's only locally owned and independently managed bank.

Currently, the Bank has seven branch offices to serve the communities of Merced, Stanislaus and Tuolumne counties, as well as a loan production office in Modesto. Capital Corp of the West is a party to an agreement for the acquisition of Town & Country Finance & Thrift Co. subject to receipt of the approval by shareholders and regulatory agencies.

For further information about the Bank's financial performance, contact Tom Hawker, President & Chief Executive Officer, or Janey Boyce, Chief Financial Officer, at 209/725-2200.

CONTACT: County Bank, Merced

Tom Hawker or Janey Boyce, 209/725-2200