Valley Community Bank

Pleasanton, CA · Cert 34689

FDIC · 3 branches

Q4 2014

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2

Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q4 2014, the quarter ended December 31, 2014, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Pleasanton, CA · Cert 34689

FDIC · 3 branches

Q4 2014

$126.4MAssets

$77.5MLoans

$108.9MDeposits

$15.3MEquity

Loan mix

Deposit mix

Market Position · San Francisco-Oakland-Hayward, CA · 2014 SOD (annual) · 0.0% share · #59 of 75 inst. · $0.1B of $307.0B

0.3% Alameda

0.0% Santa Clara

Earnings: ROA of -0.38%, down 14 bps year over year; NIM at 4.03%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.40%.
Funding: loans stand at 71.17% of deposits as of Q4 2014.

Return on Assets (YTD, annualized)

-0.38%-14 bps YoY

Net Interest Margin (YTD, annualized)

4.03%+22 bps YoY

Efficiency Ratio (YTD, annualized)

107.82%+569 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	YoY Δ	Trend
Earnings
Return on Assets	-0.24%	1.15%	0.20%	0.11%	-0.38%	-14 bps
Return on Equity	-2.20%	9.95%	1.72%	0.90%	-3.22%	-101 bps
Net Interest Margin	3.80%	4.48%	4.03%	3.94%	4.03%	+22 bps
Efficiency Ratio	102.13%	79.11%	95.90%	97.85%	107.82%	+569 bps
Non-Interest Burden	3.91%	3.36%	3.83%	3.83%	4.42%	+51 bps
Growth
Asset Growth (YoY)	-14.54%	-11.21%	-6.34%	-11.16%	-8.71%	+583 bps
Loan Growth (YoY)	-22.07%	-21.20%	-19.88%	-20.44%	-14.99%	+708 bps
Deposit Growth (YoY)	-13.70%	-12.65%	-7.47%	-13.02%	-9.71%	+400 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.92%	-0.51%	-0.32%	0.35%	0.40%	-53 bps
Allowance / Loans	5.01%	5.48%	5.63%	5.33%	5.50%	+49 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	17.55%	18.47%	18.06%	18.71%	19.21%	+166 bps
Equity / Assets	11.38%	11.65%	11.86%	12.20%	12.13%	+75 bps
Liquidity & Funding
Loans / Deposits	75.60%	70.69%	71.88%	73.01%	71.17%	-443 bps
Liquid Assets / Assets	9.24%	13.16%	9.11%	11.55%	14.35%	+511 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a