Affinity Bank
FOR IMMEDIATE RELEASE
July 28, 1999

Affinity Bank Reports Record Second Quarter Earnings

Affinity Bank, headquartered in Ventura, California, reported net earnings today of $564,000 for the quarter ended June 30, 1999.

This was the first quarter of sustained earnings posted by the rapidly growing privately-held financial institution. Assets as of June 30, 1999 were $212.1 million, up from $172.0 million on December 31, 1998 and $87.1 million on December 31, 1997.

The bank’s income property loan program has also grown significantly. During the first six months of 1999, the financial institution closed $92.4 million in new income property loans, selling $31.9 million in the secondary market.

Affinity Bank launched its operations in 1996, following the acquisition of San Francisco Thrift & Loan in the fall of 1995. In addition to the strong growth in loans and deposits since acquisition, the Bank has also added more than $2 million in reserves to its Allowances for Loan and Lease Losses ("ALLL") to protect against potential future loan losses. As of June 30, 1999, the Bank’s ALLL totaled $2.2 million and non-performing assets ("NPAs") were $430,400 or .2% of total assets.

Asked to comment on the financial institutionÍs latest earnings report, bank president, Michael McGuire, said, "We’re very pleased with the bank’s performance and with its acceptance both nationally as well as locally. People seem to like our rates and our commitment to customer service."

While the bank’s primary source of deposits come from its Good Sam Club recreational vehicle affiliates, whose members live all over the country, the bank also has been successful at attracting local depositors in both of the communities it serves Ü Ventura and San Francisco. Good Sam members represented $96.3 million in deposits as of June 30, 1999, with local community deposits totaling $84.9 million at that date.

"We plan to keep growing," McGuire said. "We believe that there are a lot of positive things we can do to further service the local community and our Good Sam Club members, as well as continue to grow our income property loan program."

The bank’s loan program focuses on originating, selling, and servicing real estate loans for the acquisition or rehabilitation of multi-family and other income property, primarily in California.

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