Golden Pacific Bancorp, Inc. Completes Acquisition of Gold Country Financial Services, Inc. and Gold Country Bank N.A.

SACRAMENTO, Calif.--(BUSINESS WIRE)--Golden Pacific Bancorp, Inc., formed for the purpose of creating a statewide network of community banks in California, received approval from the Board of Governors of the Federal Reserve System on April 15, 2010, to become a bank holding company by acquiring Gold Country Financial Services, Inc, and indirectly Gold Country Bank N.A., both of Marysville CA., pursuant to section 3(a)(1) of the Bank Holding Company Act of 1956.

On April 30, 2010, Golden Pacific Bancorp, Inc. successfully closed an all-stock merger with Gold Country Financial Services, Inc., the parent company of Gold Country Bank N.A., headquartered in Marysville, California, in accordance with the regulators’ approval and the Agreement and Plan of Reorganization and Merger by and among Gold Country Financial Services, Inc. and Golden Pacific Bancorp, Inc. dated August 6, 2009. The merger is expected to become effective upon filing with the California Secretary of State on May 3, 2010. Per the agreement, Golden Pacific Bancorp, Inc. will inject $10 million of new capital into Gold Country Bank and open a new branch located at 980 9^th Street, Sacramento. The new branch is scheduled to open in June and will operate under the name of Golden Pacific Bank.

Gold Country Bank will ultimately operate as a fictitious business name of Golden Pacific Bank. “With roughly $100 million in assets and 5 branches throughout Butte, Sutter and Yuba counties, this acquisition marks an exciting first step in our plan to create a multi-bank holding company that focuses on the customer, and partners with small to medium sized businesses that operate in our region. We intend to grow Golden Pacific Bancorp via prudent bank acquisitions and organically developing our bank franchises, while maintaining the local brand and culture of excellent customer service. This strategy allows us to increase existing bank products and services while improving efficiencies through technology and centralized operations," stated Kirk Dowdell, CEO of Golden Pacific Bancorp, Inc.

This acquisition will provide existing Gold Country Bank customers access to new products and lending opportunities, including residential and small business lending, treasury management services, and enhanced online banking.

"We are extremely fortunate to acquire an organization that has an excellent footprint, a great reputation in the community, and exceptional staff who have a history of delivering quality service. This merger will contribute a significant economic impact in the region. With an infusion of new capital, we anticipate lending in excess of $100 million in new loans over the next few years. We are excited to serve main street businesses and their customers with custom financial solutions," stated Roy Malone, President of Golden Pacific Bancorp, Inc.

This press release contains statements which constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve the anticipated development and expansion of our business, and our intent, belief or current expectations, and that of our directors or our officers. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, our performance and implementation of our business plans, loan performance, interest rates, and regulatory matters.