SCVBank Finds Growth Opportunities in Challenging Market
Seven Consecutive Quarters Without a Loan Charge-off

SANTA PAULA, CA. October 9, 2008- Santa Clara Valley Bank (SCVBank;OTC BB:SCVE.OB) today announced its 2008 third quarter financial results.

During the third quarter, loans grew $8.8 million while deposits increased by $4.9 million. The loan growth consisted primarily of solid commercial real estate loans that other local banks were unable to fund. New depositors have come to SCVBank due to its financial strength. As a Five-Star Bank, one of the safest in America per BauerFinancial, Inc., depositors have come from several troubled banks increasing the Bank’s deposits significantly during the quarter. The Bank’s CDARS program, which provides FDIC insurance up to $50 million dollars, has also been an effective program for many depositors.

For the nine months ending 9/30/08, SCVBank’s net income was $421,000, or $0.39 per share, an increase of 46% compared to $288,000, or $0.27 per share, for the same period a year earlier. SCVBank’s net interest income increased by $364,000 or 11% over the same period in 2007.

SCVBank reported that net income was $165,000 in the third quarter of 2008, a decrease of 8xx%, XXcompared to the $180,000 of net income reported in the same quarter of 2007. The slight reduction in earnings is primarily a result of increased loan growth during the quarter which required an increased provision to the loan loss reserve. The Bank’s net interest margin remained strong at 4.81% for September.

In 20082007, the Bank’s assets grew to $113.7 million, up from $107.3 million at year-end 2007. Loans grew from $81.6 million at year-end to $92.9 million, or 14% at September 30, 2008. The Bank holds $96.72 million in deposits, up from $91.6 million at year-end. Non-interest bearing deposits comprise 30% of total deposits.

The Bank’s loan portfolio continues to perform well. SCVBank had only two non-performing loans at quarter-end and delinquencies are minimal. There were no loan charge-offs for the 7th consecutive quarter. During the last thirteen quarters, the Bank has charged-off only $1,200. CEO Michael Hause commented, “We are happy with the quality of our loan portfolio, although the current economic conditions are beginning to put pressure on some of our SBA loan customers. It will be difficult to continue to operate without a loan charge-off with the current condition of the economy”.

“Our increasing income in 2008 is a testament to the strength and conservative nature of SCVBank,” stated Chairman Guy Cole. “The Board’s oversight and conservative nature continues to ensure our long term success”.

“The Bank is in a very strong capital position. We expect to continue to grow in the fourth quarter as customers continue to call on SCVBank for their loan and deposit needs,” said CEO Hause.

Founded in 1998, Santa Clara Valley Bank has offices in Santa Paula, Fillmore, and Valencia. Under its stock symbol of SCVE.OB, Santa Clara Valley Bank's stock is traded through Howe Barnes Hofer & Arnett, McAdams Wright Ragen, Wedbush Morgan Securities and Monroe Securities. The Bank's web site is

Santa Clara Valley Bank Corporate Headquarters
901 East Main Street
Santa Paula, California 93060

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States government, and general economic conditions.