NorCal Community Bancorp Announces Results for the First Quarter 2008

Business Wire,  April 18, 2008  

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ALAMEDA, Calif. -- NorCal Community Bancorp (the "Company") (OTCBB:NCLC), parent company for Bank of Alameda, today announced results for the first quarter ended March 31, 2008. Net income for the three months ended March 31, 2008 decreased $81,000 or 13% to $528,000, compared to net income of $609,000 in the first quarter of 2007. Earnings per diluted share decreased to $0.16 in the first quarter of 2008 compared to $0.19 for the same period in 2007, a 16% decrease.

The return on average assets for the first quarter of 2008 was 0.77% and the return on average shareholders' equity was 7.81%, compared to 0.96% and 10.93%, respectively, in the first quarter of 2007. The Company's net interest margin remained relatively strong at 5.63% for the three months ended March 31, 2008, compared to 5.89% for the same period in 2007. The modest decrease of 26 basis points between these two periods was attained despite a corresponding decrease in the prime lending rate during these periods of 300 basis points. The Company has been effective in lowering its interest-bearing liability costs by 62 basis points to 2.83% for the first quarter of 2008 compared to 3.45% for the first quarter of 2007.

At March 31, 2008, the Company's total assets were $280.2 million, an increase of $17.0 million or 6% compared to March 31, 2007. Total loans and leases were $255.6 million at March 31, 2008, an increase of $27.7 million or 12% compared to March 31, 2007. Total deposits were $219.7 million at March 31, 2008, an increase of $7.0 million or 3% compared to March 31, 2007.

During the first quarter of 2008 the Company made a $300,000 provision to its allowance for loan and lease losses. This compares to a provision of $20,000 made during the first quarter of 2007 and a $225,000 provision for the fourth quarter of 2007. Although non-performing loans remained at $1.6 million, or 0.63% of total loans, the same dollar amount reported at December 31, 2007, management believes it is prudent to provide additional loan loss reserves for uncertain losses that may arise from an unsettled economic environment.

During the first quarter of 2008 the Company repurchased 35,000 shares of its common stock at an average price of $15.62 under the previously announced common stock repurchase program. Shares were purchased on the open market using available cash.

President and CEO, Stephen G. Andrews stated, "As we celebrate the tenth anniversary of Bank of Alameda we do so with pride and optimism. Pride in maintaining our core value of providing service and support to our communities, and positive optimism in a future that will bring change to those communities and our Company.

A copy of the Company's information and disclosure statement pursuant to Securities and Exchange Commission Rule 15c2-11 can be found on the home page of the Company's website at www.bankofalameda.com under the Investor Relations section.

Cautionary Statement: This release may contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated herein. Words such as "anticipate," "believe," "estimate," "expect," "should," "intend," "project," and words or phrases of similar meaning are intended to identify forward-looking statements. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from that projected.

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