ONTARIO, Calif., Nov. 23 /PRNewswire-FirstCall/ -- ICB Financial (OTC Bulletin Board: ICBN) and its wholly owned subsidiary, Inland Community Bank, N.A. (the "Bank"), reported special charges to earnings to bolster reserves during the quarter ended September 30, 2009. This action was taken in response to the continuing stress in both the National and local economies. At the same time the Bank showed significant growth in Liquidity and core deposits from the same date last year. Provisions for loan losses of $2,626,000 and other charges for OREO reserves and expenses, resulted in a net loss for the first nine months of the year of ($379,000) or ($.07) per common share, compared to net income of $475,000 or $.09 per common share in the same period of 2008.

However, given the difficult economic environment and despite the loss in the consolidated Company, we remain pleased with our core earnings strength and our growth in assets and deposits. For the nine months ended September 30, 2009 the Bank had net earnings of $255,000 and our capital ratios and liquidity levels are representative of the best in the California Banking Market.

Important financial data for the quarter ended September 30, 2009 include:

• Increased Provision for Possible Loan Losses from $1,645,000 in 2008 to $2,626,000 for the same period ending September 30, 2009, an increase of 59.6%.
• Net Loss of ($379,000) for the first nine months of 2009 compared to net income of $475,000 for the first nine months of 2008.
• Total assets increased 8.7%; $273 million as of September 30, 2009 compared to $251 million a year earlier, an increase of $22 million.
• Total loans including Available for Sale increased 5.8%; $206.9 million as of September 30, 2009 compared to $195.5 million a year earlier, an increase of $11.4 million.
• Total deposits at September 30, 2009 were up 12.8%, or $26.6 million, to $234.4 million compared to $207.8 million at September 30, 2008.
• Efficiency ratio at September 30, 2009 increased to 74.0% from 73.0% at September 30, 2008. A major factor in this change was an increase in the FDIC Insurance expense from $115,000 in 2008 to $495,000 in 2009, an increase of 330.0%.
• Non-performing assets increased to 3.45% of total assets at September 30, 2009, from 3.40% at September 30, 2008, an increase of $874,000.
• Gross interest revenue for the first nine months of 2009 was $10.3 million compared to $11.0 million for 2008, a decrease of 6.4%; this drop in gross interest income was mainly attributable to a 175 basis point drop in the prime interest rate from 5.0% in 2008 to 3.25% in 2009.
• Net loss per common share for the first nine months of 2009 was ($0.07) compared to net income of $0.09 for the first nine months 2008, a decrease of 181%.
• Other important Bank Ratios:
  • Total Risk-Based Capital - 15.0%; minimum for well capitalized banks under regulatory guidelines is 10.00%.
  • Tier 1 Leverage Capital - 10.7%; minimum for well capitalized banks under regulatory guideline is 5.0%.
  • ALLL as a percent of HTM loans - 1.73%
  • Total OREO, Delinquent and Non-accrual loans to total risk based capital - 40.4%.
  • Total OREO, Delinquent and Non-accrual loans to total loans at September 30, 2009 - 6.30%.
  • Average Net Interest Margin for the first nine months of 2009 was a healthy 4.20%.

As 2009 nears an end, it will certainly be remembered as one of the most difficult and financially eventful periods in decades. And as we go through the final quarter of the year and look forward to 2010, it is evident that the banking landscape will continue to shift. The good news is that the financial crisis has certainly eased from its peak and as market conditions have improved, liquidity has improved, however, some banks remain reluctant to lend which is slowing the overall economic recovery but Inland Community Bank, N.A. continues to seek out quality borrowing relationships.

The continued burden of increasing regulation on banks in these troubled times places a cloud over the prospect of a vibrant recovery. And the prepayment of three years of FDIC assessments, which will total in excess of $1.5 million for our Bank, will not help the return on assets which is monitored closely by all regulators and investors.

Identification of problem assets has been a high priority for the Bank and although non-performing assets have increased over the last year, we are confident that the decline in asset quality is beginning to slow.

Toward that end the Board of Directors and Management remain committed to providing early identification of problem loans and providing the essential guidance to assist in the resolution of these assets.

And finally as we have for the last year, we continue to focus our efforts on reducing non-interest expenses which will serve us well when the economy begins to rebound.

Given the difficult economic environment and despite the loss, we remain pleased with our core earnings strength and our growth in assets and deposits. Our capital ratios and liquidity levels are some of the best in the California Banking Market and the underlying earnings are strong.

Our Board of Directors and the Management team is composed of experienced bankers and businessmen who have been through crises like this before. They know that the economy does not turn in an instant, which is why we have decided to increase our Loan Loss Reserves at this time. We have built up one of the strongest core deposit banks in our peer group and we believe that our Liquidity and strong Capital position, including our Loan Loss Reserves, allow us the ability to take fiscally conservative actions during these challenging times.

We thank our customers and shareholders again for their continued support as we close out a difficult year.

James S. Cooper

President and Chief Executive Officer

                           Consolidated Balance Sheets
                         Unaudited - Internally Prepared
                                 (in thousands)


                                        September             December 08
                                           to                     to
                                        September             September 09
                   As of      As of     Percentage     As of   Percentage
                 9/30/2009  9/30/2008     Change     12/31/08    Change
                 ---------  ---------   ----------   -------- ------------
Assets
  Total cash
   and due
   from banks
    Noninterest-
     bearing
     balances,
     coin and
     currency    $10,905    $18,338         -40.5%   $6,111          78.4%
    Interest
     bearing
     balances     15,941        495        3120.4%    9,979          59.7%
  Held to
   maturity
   securities
   -HTM & AFS     14,759      7,177         105.6%    7,100         107.9%
  Federal
   funds sold          -      5,150        -100.0%        -        -100.0%

  Loans,
   available
   for sale       20,124          -         100.0%    9,520         111.4%
  Loans, held
   for investment,
   net of
   unearned
   income        189,918    198,050          -4.1%  198,125          -4.1%
    Less:
     Allowance
     for loan
     losses       (3,137)    (2,558)         22.6%   (2,727)         15.0%
                  ------     ------          ----    ------          ----
  Net loans      206,905    195,492           5.8%  204,918           1.0%
                 -------    -------           ---   -------           ---

  Premises and
   fixed
   assets -net     9,906     10,098          -1.9%   10,181          -2.7%
  Other real
   estate
   owned             700      1,484         -52.8%    1,688         -58.5%
  Goodwill         2,280      2,280           0.0%    2,280           0.0%
  Core deposit
   intangibles     1,016      1,169         -13.1%    1,094          -7.1%
  Other assets    10,566      9,382          12.6%    9,584          10.2%
                  ------      -----          ----     -----          ----
Total
 Assets         $272,978   $251,065           8.7% $252,935           7.9%
                ========   ========           ===  ========           ===

Liabilities
 and Capital
  Deposits
    Noninterest-
     bearing     $64,682    $63,930           1.2%  $57,277          12.9%
    Interest
     bearing     169,786    143,915          18.0%  154,576           9.8%
                 -------    -------          ----   -------           ---
  Total
   deposits      234,468    207,845          12.8%  211,853          10.7%
                 -------    -------          ----   -------          ----

  Borrowings           -     10,500        -100.0%    9,000        -100.0%
  Other
   liabilities     1,788      1,851          -3.4%    1,313          36.2%
                   -----      -----          ----     -----          ----
Total
 liabilities     236,256    220,196           7.3%  222,166           6.3%
                 -------    -------           ---   -------           ---

Equity capital
  Preferred
   Stock           6,300          -         100.0%        -         100.0%
  Common stock     5,121      5,106           0.3%    5,108           0.3%
  Surplus         21,641     21,608           0.2%   21,611           0.1%
  Retained
   earnings        3,616      4,160         -13.1%    3,994          -9.5%
  Accumulated
   other
   comprehensive
   income (loss)      44         (5)       -980.0%       56         -21.4%
                     ---        ---        ------       ---         -----
Total
 Equity
 Capital          36,722     30,869          19.0%   30,769          19.3%
                  ------     ------          ----    ------          ----

Total
 Liabilities
 and Equity
 Capital        $272,978   $251,065           8.7% $252,935           7.9%
                ========   ========           ===  ========           ===

Unaudited - Internally Prepared
                                     9 months      9 months     Sept 08
(in thousands, except percentages)    ended         ended      to Sept 09
                                     --------      --------    -----------
                                                               Percentage
                                     9/30/2009     9/30/2008     Change
                                     ---------     ---------   -----------
Interest Income on:
  Total interest and
   fees on loans                        $9,797       $10,484         -6.6%
  Interest on
   investment
   securities                              335           287         16.7%
  Interest on
   federal funds
   sold                                      3            98        -96.9%
  Other interest income                    246           219         12.3%
                                           ---           ---         ----
     Total interest income              10,381        11,088         -6.4%
                                        ------        ------         ----
Interest Expense:
  Interest paid on deposits              2,696         3,126        -13.8%
  Interest paid on borrowings               26           210        -87.6%
                                            --           ---        -----
     Total interest expense              2,722         3,336        -18.4%
                                         -----         -----        -----

Net interest income                     $7,659        $7,752         -1.2%

Provision for Possible Loan
 Losses and OBS reserve                  2,626         1,645         59.6%
                                         -----         -----         ----

Net Interest Income
 after ALLL Provision                    5,033         6,107        -17.6%

Total non-interest income                1,411         1,135         24.3%

Total non-interest expense               6,716         6,487          3.5%
                                          ----           ---       ------
Income (Loss)
 before income
 taxes                                    (272)          755       -136.0%
  Applicable income tax
   expense (benefit)                      (115)          280       -141.1%
                                         -----          ----       ------
Net income (loss) before
 preferred dividend expense              $(157)         $475       -133.1%
  Preferred stock
   dividend expense                       (222)            -       100.00%
                                          ----             -       ------

Net Income After
 Preferred Dividend
 Expense                                 $(379)         $475       -179.8%
                                         =====          ====       ======

                                             SELECTED FINANCIAL RATIOS
Per Common Share Data
  Earnings per share - basic             (0.07)         0.09       -181.5%
  Earnings per share - diluted           (0.07)         0.09       -181.7%
  Shares outstanding - (actual)      5,120,861     5,106,346          0.3%
  Weighted Average
   Shares Outstanding                5,112,108     5,224,879         -2.2%
  Shares outstanding -
   (fully diluted)                   5,255,378     5,381,279         -2.3%

Financial Ratios
  Return on Average Assets               -0.19%         0.25%      -176.5%
  Return on Average Equity               -1.50%         1.94%      -177.2%
  Net interest margin                     4.46%         4.94%        -9.7%
  Efficiency ratio                        74.0%         73.0%        -1.4%
  Loan to deposit ratio                   89.6%         95.3%        -6.0%
  ALLL as a percent of Total
   Loans (Includes OBS reserve)           1.73%         1.34%        29.1%
  Non-performing assets                 $9,410        $8,536         10.2%
  Non-performing assets as a
   percent of total loans                 4.48%         4.31%         3.9%
  Non-performing assets as a
   percent of total assets                3.45%         3.40%         1.4%
  Book value per share                   $5.94         $6.05         -1.7%
  Tangible book value per share          $5.30         $5.37         -1.4%



                                                               3rd Qtr 08
(in thousands,                     3rd Quarter    3rd Quarter     to
 except percentages)                  ended          ended     3rd Qtr 09
                                   ------------   -----------  -----------
                                                               Percentage
                                     9/30/2009     9/30/2008     Change
                                     ---------     ---------   -----------
Interest Income on:
  Total interest and
   fees on loans                        $3,270        $3,397         -3.7%
  Interest on
   investment
   securities                              123            95         29.5%
  Interest on
   federal funds
   sold                                      1            24        -95.8%
  Other interest income                     96            36        166.7%
                                            --            --        -----
     Total interest income               3,490         3,552         -1.7%
                                         -----         -----         ----
Interest Expense:
  Interest paid on deposits                842           961        -12.4%
  Interest paid on borrowings                3            92        -96.7%
                                             -            --        -----
     Total interest expense                845         1,053        -19.8%
                                           ---         -----        -----

Net interest income                     $2,645        $2,499          5.8%

Provision for Possible Loan
 Losses and OBS reserve                  1,108         1,165         -4.9%
                                         -----         -----         ----

Net Interest Income
 after ALLL Provision                    1,537         1,334         15.2%

Total non-interest income                  547           416         31.5%

Total non-interest expense               2,078         2,110         -1.5%
                                           ---          ----        -----
Income (Loss)
 before income
 taxes                                       6          (360)       101.7%
  Applicable income tax
   expense (benefit)                         5          (139)       103.6%
                                           ---         -----        -----
Net income (loss) before
 preferred dividend expense                 $1         $(221)       100.5%
  Preferred stock
   dividend expense                        (98)            -        100.0%
                                           ---           ---        -----

Net Income After
 Preferred Dividend
 Expense                                  $(97)        $(221)        56.1%
                                          ====         =====         ====

                                             SELECTED FINANCIAL RATIOS
Per Common Share Data
  Earnings per share - basic             (0.08)        (0.17)        56.2%
  Earnings per share - diluted           (0.07)        (0.16)        55.1%
  Shares outstanding - (actual)      5,120,861     5,106,346          0.3%
  Weighted Average
   Shares Outstanding                5,120,861     5,224,879         -2.0%
  Shares outstanding -
   (fully diluted)                   5,255,378     5,381,279         -2.3%

Financial Ratios
  Return on Average Assets               -0.05%        -0.12%        61.1%
  Return on Average Equity               -0.29%        -0.74%        61.1%
  Net interest margin                     4.38%         5.10%       -14.1%
  Efficiency ratio                        65.1%         72.4%        10.1%
  Loan to deposit ratio                   89.6%         95.3%        -6.0%
  ALLL as a percent of Total
   Loans (Includes OBS reserve)           1.73%         1.34%        29.1%
  Non-performing assets                 $9,410        $8,536         10.2%
  Non-performing assets as a
   percent of total loans                 4.48%         4.31%         3.9%
  Non-performing assets as a
   percent of total assets                3.45%         3.40%         1.4%
  Book value per share                   $5.94         $6.05         -1.7%
  Tangible book value per share          $5.30         $5.37         -1.4%

Contact:
Tom Griel
909-483-8882
tgriel@inlandcommunitybank.com

SOURCE ICB Financial