Valley Community Bank Responds to Media Reports

PLEASANTON, Calif.--(BUSINESS WIRE)--Valley Community Bank today responded to media coverage of its legal actions regarding the Del Biaggio bankruptcy filing.

"As reported in the press, Valley Community Bank made a loan earlier this year to William Del Biaggio,” says President and CEO Rick Loupe. “Mr. Del Biaggio has since filed for bankruptcy, on June 6, 2008. A number of other banks and lending institutions are apparently similarly situated with respect to claims against this individual. The Bank is taking all appropriate steps, including engaging counsel, to protect its interests. It will be asserting appropriate claims in the context of the bankruptcy and has filed a separate action against third parties allegedly involved in the Del Biaggio loan. The Bank intends to pursue these remedies aggressively.

“The Bank is well-capitalized with respect to all key regulatory ratios, and as a result, has determined that it is prudent to charge off the loan. The Bank remains well-capitalized after the write-off. Notwithstanding the one-time charge off, and as mentioned above, the Bank will aggressively pursue any remedies against Mr. Del Biaggio and third parties with respect to the loan. "

Valley Community Bank, which is locally owned and operated, will celebrate its tenth anniversary this summer. The bank opened for business on August 10, 1998 in the historic Johnston Building at 465 Main Street in Pleasanton. A second location opened in 2000 at 1986 Second Street in Livermore, a third in 2003 at 2355 San Ramon Valley Boulevard, Suite 101 in San Ramon, a fourth in 2005 at 1150 So. Bascom Avenue, Suite 29, in San Jose and a fifth in 2007 at 540 Front Street, Suite 310, Santa Cruz. The Bank’s directors, all with strong local interests and contacts, are committed to community banking with expert local staffing and personalized service.

In addition to its signature face-to-face service, the bank offers walk-up ATM service, online banking, e Deposit and courier service to customers throughout the East Bay, San Jose and Santa Cruz. The bank may be reached at (925) 484-5400 in Pleasanton, at (925) 243-9600 in Livermore, at (925) 855-3800 in San Ramon, at (408) 275-7150 in San Jose, and at (831) 421-0236 in Santa Cruz or at www.vcb-ca.com.

Note to Editor: Valley Community Bank President & CEO Rick Loupe is available for interviews at (925) 621-7200.