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RICHMOND, California, August 15, 2006—Mechanics Bank has appointed Peggy Herzog as Risk Manager, overseeing the Bank’s federal and state regulatory compliance program.

Ms. Herzog, 55, has more than 25 years of banking experience, starting as a loan secretary and then serving in loan processing and documentation. She later was responsible for centralizing the note department functions of a 50-branch network. Before joining Mechanics Bank, she spent 16 years with Bank of Walnut Creek where she was Senior Vice President/Compliance Officer, serving also as the Community Reinvestment Act and Bank Secrecy Act Officer.

"Mechanics Bank will continue to provide me the opportunity to work with a first class, community bank that enjoys a solid reputation in the banking community. From the interview process through my first few weeks at Mechanics Bank, I have been welcomed by everyone here. It’s a pleasure to be part of this organization, as I continue on with my career."

Currently a committee member on the California Bankers Association’s Regulatory Compliance Committee, Ms. Herzog previously sat on Board of Directors for California Banker’s Executive Council (a chapter of BAI) for several years. She also is active as a volunteer fund-raiser for Shelter Inc. (of Contra Costa County), an organization that works to prevent homelessness, promote self-sufficiency, and provide affordable housing to those in need.

A graduate of Trend Business College in Yakima, Washington, Ms. Herzog attended courses at California State University Hayward (now California State University East Bay) and obtained a Paralegal Certificate in 1989. She completed the American Bankers Association National Compliance School and National Graduate Compliance School and in 1995 became a Certified Regulatory Compliance Manager (CRCM) through the Institute of Certified Bankers.

Ms. Herzog lives in Antioch, California, with her husband, Paul Mills II.

Mechanics Bank is headquartered in Richmond, California. The 100-year-old family-owned community bank is one of the largest independent banks headquartered in Northern California, with more than $2.7 billion in assets.

Press contacts:
Ms. Hatti Hamlin

Mr. David Louis