Belvedere SoCal Reports First Quarter 2008 Results

PASADENA, Calif.--(BUSINESS WIRE)--Belvedere SoCal (OTCBB:BLVE), the parent company of Professional Business Bank and Spectrum Bank, today announced results for the quarter ended March 31, 2008. In addition to significant balance sheet growth fueled by the acquisition of Spectrum Bank, SoCal also announced significant progress on key strategic initiatives designed to produce long-term shareholder value.

“Now we can begin to actively consider acquisition opportunities and focus on attracting the world-class personnel to help execute on our vision.”

Total assets grew to $467 million during the quarter, with $313 million of gross loans and $356 million of deposits. Each of these metrics was above expectations previously announced in February 2008. Asset growth was principally driven by increases of $98 million in loans and $57 million in cash, investment securities and deposits at other financial institutions. Total deposits grew by $162 million, with increases of $47 million in non-interest bearing demand deposits and $28 million in interest-bearing checking, savings, and money market accounts.

“We are very pleased with the balance sheet growth that our team was able to generate during the quarter,” Alan Lane, Executive Chairman, said. “Equally as important, we were able to make progress on four key initiatives that we expect will enhance long-term shareholder value.”

During the quarter, SoCal completed the acquisition of Spectrum Bank, appointed a new CEO, augmented regulatory capital at one of its bank subsidiaries and made preparations for the merger of its subsidiary banks in the third quarter of 2008. All four of these accomplishments should help to position SoCal for long-term success.

“We have built the foundation needed to fulfill our vision of becoming the leading small business focused bank in Southern California,” William Baribault, CEO, said. “Now we can begin to actively consider acquisition opportunities and focus on attracting the world-class personnel to help execute on our vision.”

Loan Portfolio

SoCal’s loan portfolio continues to perform well despite economic headwinds facing Southern California’s regional economy. At March 31, 2008, nonperforming loans totaled $2.9 million, or 0.92% of total loans. As of March 31, 2008, 26% of SoCal’s loan portfolio was comprised of small business loans and 57% was comprised of commercial real estate loans, many of which are for owner occupied properties which typically perform similarly to small business loans.

“Our loan loss reserves are now approximately 2% of our gross loans under the expectation that the economic slowdown will hurt some of our borrowers, but we remain confident that the long-term economic outlook for the Southern California economy is quite strong,” Baribault said.

Income Statement

Net Interest Income and Non-Interest Income increased $1.5 million and $200 thousand, respectively, in the first quarter, primarily as a result of the acquisition of Spectrum Bank which was completed mid-way through the quarter and only partially included in the reported financials. Non-Interest Expense increased by over $2 million during the quarter, primarily because of the Spectrum Bank acquisition, increased compensation expense at Professional Business Bank, and non-recurring, merger related expenses.

“We expect to produce meaningful savings from the pending merger of our two bank subsidiaries during the third quarter of 2008,” Lane said. “Savings should primarily come from expense reductions in vendor relationships and some re-alignment of personnel to improve operational efficiency.”

Additional detail on the first quarter results of Belvedere SoCal can be found on SEC Form 10-Q viewable at http://www.sec.gov

About Belvedere SoCal

Belvedere SoCal was formed by Belvedere Capital Fund II L.P. to aggregate Southern California community bank franchises for the purpose of building the leading small business-focused community bank in the region. Belvedere SoCal is the bank holding company for Professional Business Bank and Spectrum Bank. Belvedere SoCal is traded on the OTC Bulletin Board under the ticker symbol BLVE.

About Professional Business Bank

Headquartered in Pasadena, CA, Professional Business Bank was created by business leaders for business leaders. Through its branch network and seasoned personnel, Professional Business Bank offers personal and business deposit and loan relationships. Loans are offered through commercial, construction, real estate, SBA and CalCAP lending officers. Additional information may be found at www.probizbank.com or by calling 626-395-7000.

About Spectrum Bank

Spectrum Bank provides cutting edge technological services together with the same personalized services that have been the keystone of the bank since its 1955 founding. Spectrum Bank’s mission is to consistently provide professional, friendly and secure banking services for business and individual customers, who want and need their banking services provided in a caring and personal manner. Offices are located at 15615 Alton Parkway in Irvine, California; 2417 West Whittier Boulevard in Montebello, California, and 6094 Warner Avenue in Huntington Beach, California. For more information, please visit www.spectrumbank.com.

FORWARD LOOKING STATEMENTS

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. When used in this release, the words or phrases such as “will continue,” “is anticipated,” “estimate,” “expect,” “projected,” “believes,” “seeking,” or similar expressions, are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Readers should not place undue reliance on the forward-looking statements, which reflect views only as of the date hereof. Neither Belvedere SoCal, Belvedere Capital, Professional Business Bank nor Spectrum Bank undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.