CUSTOMERS CAN FEEL CONFIDENT ABOUT BANKING WITH AMERICAN SECURITY BANK

   For last six years, American Security Bank was rated a Super Premier Performing Bank by The Findley Company. BauerFinancial has also given the Bank its 5-Star rating since December, 2006. Both ratings are the highest available from each agency. Financial institutions are awarded ratings that depict their overall performance level and financial stability. Areas rated include; capital, profitability, historical trends, loan delinquencies, repossessed assets, reserves, regulatory compliance and management.

   Our business plan includes plans for expansion and we have the capital to support it. During the first half of 2008 we opened a new office in Apple Valley, Spirit River and an office in Newport Beach. We will open a third office in Apple Valley, Jess Ranch area by year-end. Each branch required and received regulatory approval which was given with no reservations.

   Our capital reserves are strong. Since American Security Bank is a privately held institution we would have immediate access to additional capital from our owner should the need arise.

CAPITAL RATIOS:
(unaudited)
Tier One Capital to Adjusted Total Assets:
Minimum Statutory Requirements: 4.00%
Minimum Well-Capitalized Requirements: 5.00%
As of June 30, 2008: 9.75%

Tier One Capital to Risk Weighted Assets:
Minimum Statutory Requirements: 4.00%
Minimum Well-Capitalized Requirements: 6.00%
As of June 30, 2008: 10.70%

Total Capital to Risk Weighted Assets:
Minimum Statutory Requirements: 8.00%
Minimum Well-Capitalized Requirements: 10.00%
As of June 30, 2008: 12.12%

   While the Bank has been a strong commercial real estate lender, we began to decrease our exposure in this area during the summer of 2007. Our EVP, Chief Credit Officer has been through the peaks and valleys of the real estate market in a career spanning more than 30 years and his experience has built a platform for our lending philosophy that is growth oriented, yet conservative and has served the bank well in the current economic climate.

   The Bank continues to generate a profit. Figures for the second quarter do reflect the obvious economic challenges felt by every business, but the net earnings reflect a profit even after conservatively earmarking funds for loan loss reserves should they be needed.

   American Security Bank has very limited exposure in the types of loans that are creating losses in many financial institutions; mortgage, home equity loans and lines of credit and credit cards.

   As always, American Security Bank’s branch and relationship managers work closely with clients to ensure a mutual comfort level is maintained despite media input that would create unnecessary concerns.