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REGIONAL EARNINGS

VCNB in Oxnard Posts Modest 4th-Quarter Profit

February 28, 1995

Ventura County National Bancorp., a bank holding company based in Oxnard, reported a modest profit in the fourth quarter that ended Dec. 31, after a year spent weeding out problem loans and racing to raise capital levels.

VCNB reported net income of $50,000 for the fourth quarter that ended Dec. 31, compared to a loss of $3.54 million in the same three-month period a year ago. For the year that ended Dec. 31, VCNB posted a loss of $262,000, down sharply from the $12.1-million loss reported in 1993.

"1994 was definitely a turnaround year for VCNB," said Richard S. Cupp, chief executive of VCNB. "Management remains committed to reducing non-performing assets and building a strong balance sheet."

Assets totaled $258 million on Dec. 31, down 24% from $341 million a year earlier. The decline reflected an extensive effort to sell off troubled loans and other non-performing assets. At year-end, non-performing assets totaled $11.2 million, about half the total of $22.1 million recorded a year earlier. As a result, VCNB set aside $550,000 in the fourth quarter to cover expected loan losses, down from $1.8 million in the fourth quarter of 1993.

VCNB has also been under pressure by state regulators to meet two capital ratio targets before a June 30 deadline. Capital ratios reflect how safely a bank is positioned to cover its loans. Cupp said VCNB has met one of those targets and expects to meet the other requirement through a previously announced plan to issue and sell $5 million in new stock.

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