Affinity Bank
FOR IMMEDIATE RELEASE
November 4, 1999

Affinity Bank Reports Record Third Quarter Earnings

Affinity Bank, headquartered in Ventura, California, reported net earnings today of $335,000 for the quarter ended September 30, 1999.

This was the second quarter of sustained earnings posted by the rapidly growing privately held financial institution. Assets at September 30, 1999 were $235.0 million, an increase of 37% from the December 31, 1998 balance of $172.0 million.

The Bank’s income property loan program continued its significant growth. During the first nine months of 1999, the financial institution closed $130.4 million in new income property loans, selling $53.2 million in the secondary market.

Affinity Bank launched its operations in 1996, following the acquisition of San Francisco Thrift & Loan in 1995. In addition to the strong growth in loans and deposits since acquisition, the Bank has also added $2.9 million in reserves to its Allowances for Loan and Lease Losses ("ALLL") to protect against potential future loan losses. As of September 30, 1999, the Bank’s ALLL totaled $2.5 million and non-performing assets ("NPAs") were $218,100 or .1% of total assets.

Asked to comment on the financial institution’s latest earnings report, bank president, Michael McGuire, said, "I am pleased with the Bank’s continued progress in growth and profitability. I am particularly happy that we have been able to maintain a high level of service to our customers while significantly improving operating efficiencies. The Bank’s ratio of operating expenses to average assets decreased to 1.7% for the first nine months of 1999 from 2.1% for the same period in 1998."

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 - Ventura and San Francisco. Good Sam members represented $93.4 million in deposits as of September 30, 1999, with local community deposits totaling $91.8 million at that date.

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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