May 1, 2015

To Our Shareholders, Clients and Friends,

NCAL Bancorp and its subsidiary, National Bank of California, ended 2014 on a high note, as we completed the successful recapitalization of the Company. Concurrently, as previously announced, Mr. Alex Meruelo and the current directors and officers of NCAL Bancorp purchased and retired all outstanding shares of the Company’s fixed rate cumulative perpetual preferred stock from the U.S. Department of the Treasury. Also in December, Alex Meruelo, Luis Armona, Xavier Gutierrez, and Ash Patel joined the Company’s board, with Mr. Patel elected Board Chairman.

We are pleased to have the financial and leadership support of Mr. Meruelo and his team. This important achievement provides a solid capital base for new growth while helping us meet our regulatory commitments. This would not have happened without the tireless efforts of our founding Board of Directors and the management team. Since 1982, our dedicated directors have diligently served to set policy and provide direction, while maintaining active roles in the communities we serve. We wish to acknowledge and give special thanks to Daniel Dworsky, Jerald Friedman, Mark Lainer, and Stanley Treitel for their commitment and service over the years. While we will miss these men and their contributions, a legacy of our founding remains on the board, as Joe Kornwasser, Alfred Landolph and Henry Homsher will continue their leadership to revitalize and enrich the organization’s future success.

Thus begins a new chapter in the life of a great bank. While there is still much work ahead of us, some of the most capable people in banking are serving on the NCAL team. In 2014, net loans rose 3.5%, an increase of over $8 million from the $231,623,200 posted in 2013. Similarly, our core non-interest bearing deposits grew over $4.2 million this past year, and represent a healthy 61.2% of total deposits. While we have not yet achieved the level of performance we seek, we are gaining momentum and improving results. As we move forward, we will continue to build on this solid foundation by increasing our portfolio of business and professional clients. We believe our experience and expertise in both traditional and electronic banking can be expanded upon to generate new sources of income for the bank and new benefits for our customers.

Looking ahead, we plan to give National Bank of California a new, fresh look including a new logo design, new marketing materials, and a totally revamped website. We want our clients and prospective clients to enjoy easy access to the information they need. There is much to do, but one primary objective will remain unchanged: our reputation for service excellence. You will continue to receive first-rate, personalized service from our friendly and experienced staff.

To our shareholders, our loyal customers, our dedicated board of directors, and our hardworking staff we sincerely say ----Thank you!

Henry P Homsher
Peter Koos
EVP/Chief Operating Officer

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