Pacific Coast National Bank
Community Reinvestment Act Statement

In order to comply with federal regulations and best serve our communities, the Board of Directors and the management team of Pacific Coast National Bank ("The BANK"), recognize the need to establish and document the organization's CRA policy. CRA regulations, CRA examination guidelines, and the related rating systems, place further emphasis on the Bank's CRA commitment. While inherently, there are risks with any type of investment; community development projects often encompass more risk due to economic initiatives and their attendant funding issues. Therefore, the directors and management must evaluate not only the Bank's level of CRA efforts, but also its ability to manage any inherent risks in order to maintain its commitment to operating the Bank in a safe and sound manner.

Regulatory examiners will be expecting both the Bank's management and its Board of Directors to actively participate in managing the organization's commitment to its CRA activities. Pacific Coast National Bank has implemented clearly written policies and procedures regarding the CRA which are essential to sound risk management and to establish guidelines within which the Bank's management may effectively manage CRA and community development activities.