ICB Financial First Quarter 2010 Financial Performance

ONTARIO, Calif., April 26 /PRNewswire-FirstCall/ -- ICB Financial (OTC Bulletin Board: ICBN)

Letter to Our Customers and Shareholders

Actions taken in 2009 have supported our return to profitability for the first quarter of 2010.  ICB Financial ("ICBF") and its wholly owned subsidiary, Inland Community Bank, ("ICB"), returned to profitability for the first quarter of 2010 with a net income of $410,846 for ICB and consolidated income for ICBF of $186,623 after provisions and several one-time impairment charges. Along with improved earnings, we expect our credit costs to continue to stabilize as we work diligently to manage any weaknesses in our loan portfolio which were brought on by local and national economic issues. ICBF is also committed to maintaining loan loss provisions at a conservative level in the face of an economy that is still in the midst of recovery.

The gains in our deposit base are an indication of the ongoing trust that customers place in Inland Community Bank. The efforts we have made to build one of the strongest core deposit banks in our peer group are continuing to show positive results; deposits grew 14.4% to $250.1 million from $218.6 million at March 31, 2009. The Bank also continued to maintain a healthy annualized net interest margin of 4.31% in March of 2010 compared to 4.06% in March of 2009.

Our area's ongoing economic downturn impacted our lending operations and we are staying vigilant in our lending practices. Total loans were $185.4 million at March 31, 2010, a 20% decrease from $230.5 million at March 31, 2009. With asset quality and continuous monitoring of problem assets remaining a top priority, ICBF also added $263,000 toward impairment charges and ALLL in the first quarter of the year. The ICB ratio of the ALLL to total loans remains strong at 2.45%.

Financial Performance highlights for the year and quarter ended March 31, 2010 include:

• Total assets were $283.5 million at March 31, 2010, a decrease of 2.9% from $291.8 million at March 31, 2009.
• Net income for the first quarter of 2010 was $186,623 compared to a net loss of ($538,000) for the same period in 2009.
• Total loans at March 31, 2010 were $185.4 million compared to $230.5 million at March 31, 2009.
• Total deposits at March 31, 2010 were $250.1 million, up 14.4% or $31.4 million compared to March 31, 2009.
• The Efficiency ratio for the month of March 2010 was 69.17%, a substantial improvement from 82.24% in March 2009.
• Non-performing assets decreased to 3.3% of total assets at March 31, 2010 compared to 3.5% at March 31, 2009.
• Past due loans at the end of the first quarter have decreased 44% since year-end 2009.
• Net earnings per common share for the first quarter of 2010 were $0.04 compared to net loss of ($0.11) for the same period in 2009.
• Provision for loan and lease losses was $100,000 for 2010 versus $920,000 for 2009.
• Gross interest revenue was $3.334 million for 2010, compared to $3.314 million for 2009, an increase of 0.6%.
• Important Ratios at March 31, 2010:
  • Total Risk-Based Capital is 14.05%; minimum for well capitalized banks under regulatory guidelines is 10.00%.
  • Tier 1 Leverage Capital is 9.21%; minimum for well capitalized banks under regulatory guidelines is 5.0%
  • ALLL as a percent of loans (excludes loans held for sale) is 2.45%.
  • ICB net loan charge-offs for the first quarter of 2010 as a percent of 2010 average total outstanding loans are  $5,419 or 0.003%
  • Total OREO, Delinquent and Non-accrual loans (NPA's) to total risk-based capital at March 31, 2010 was 27.1%.
  • Average Net Interest Margin for 2010 was a healthy 4.31%.

The multi-pronged approach we took to strengthen the ICB franchise in 2009 has fortified our ability to meet the needs of our credit-worthy customers and serve as a valuable resource in the recovery of the area's business community. We augmented the Bank's management group with Inland Empire bankers who possess extensive business banking experience and will be instrumental in developing new business relationships in the upcoming months. We also continue to look for ways to generate internal growth that complements the efforts to increase our market share.

As a result of our sound liquidity risk management practices, Inland Community Bank has maintained strong liquidity and has over 26% of its assets invested in cash, interest bearing deposits and highly marketable U.S. Agency Securities. With our strong capital and liquidity positions, as well as our continuing commitment to increase operating efficiencies and reduce expenses, we are positioning the Bank to sustain the positive trends of the first quarter through the remainder of the year and beyond.

While the economy remains a challenge going forward, our response to the difficult conditions we experienced in 2009 have reinforced our status as a financially stable and sound community bank. In 2010, Inland Community Bank celebrates its 20th anniversary, a milestone that illustrates our commitment and long-term staying power.

As always, we are grateful for the continuing support of our customers and shareholders and we look forward to building on the momentum from the first quarter.

James S. Cooper

President and Chief Executive Officer

Forward-looking statements

Certain statements in this press release constitute forward-looking statements that are based upon current management expectations and, therefore, are subject to certain risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed, suggested, or implied. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Often, they include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."  Forward-looking statements are effective only as of the date that they are made, and ICB Financial assumes no obligation to update this information to reflect occurrences or unanticipated events or circumstances after the date of such statements.

CONTACT:  James Cooper, 1-909-481-8706, ext. 280

SOURCE ICB Financial