For immediate release

The Federal Reserve Board today announced its approval of the application by Neighborhood Bancorp, San Diego, California, to become a bank holding company by acquiring approximately 95 percent of the voting shares of Neighborhood National Bank, also in San Diego, a de novo chartered national bank with a community development focus. Attached is the Board's Order relating to this action.

Neighborhood Bancorp San Diego, California Order Approving the Formation of a Bank Holding Company

Neighborhood Bancorp, San Diego, California ("Neighborhood"), has requested the Board's approval under section 3 of the Bank Holding Company Act (12 U.S.C. § 1842) ("BHC Act") to become a bank holding company by acquiring approximately 95 percent of the voting shares of Neighborhood National Bank ("Bank"), also in San Diego, a de novo chartered national bank with a community development focus.1 Notice of the application, affording interested persons an opportunity to submit comments, has been published (62 Federal Register 29,347 (1997)). The time for filing comments has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the BHC Act. Neighborhood is a nonoperating corporation formed for the purpose of acquiring Bank. Accordingly, the Board concludes that consummation of this proposal would not have a significantly adverse effect on competition or the concentration of banking resources in any relevant banking market. The Board also concludes that the financial and managerial resources and future prospects of Neighborhood and Bank are consistent with approval, as are the convenience and needs and other supervisory factors the Board is required to consider under section 3 of the BHC Act. Based on the foregoing and all the facts of record, the Board has determined that this application should be, and hereby is, approved. The Board's approval is expressly conditioned on compliance with all the commitments made by Neighborhood, including those made by the principals of Neighborhood, in connection with this application. For purposes of this action, the commitments and conditions relied on by the Board in reaching this decision are deemed to be conditions imposed in writing by the Board in connection with its findings and decision, and, as such, may be enforced in proceedings under applicable law. This transaction shall not be consummated before the fifteenth calendar day following the effective date of this order, or later than three months following the effective date of this order, and Bank shall be open for business within six months following the effective date of this order, unless such periods are extended for good cause by the Board or the Federal Reserve Bank of San Francisco, acting pursuant to delegated authority.

By order of the Board of Governors,2 effective July 21, 1997. (signed) Jennifer J. Johnson Jennifer J. Johnson Deputy Secretary of the Board

Footnotes 1 The remaining voting shares of Bank would be acquired by the Federal National Mortgage Association. Bank would engage primarily in lending activities that support the development and maintenance of affordable housing stock in San Diego County, and has received preliminary charter approval from the Office of the Comptroller of the Currency. 2 This action was taken pursuant to the Board's Rules Regarding Delegation of Authority (12 C.F.R. 265.4(b)(1)) by a committee of Board members. Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and Governor Meyer.

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1997 Orders on banking applications