TO THE SHAREHOLDERS OF VALLEY BANK

    We recently sent you the proxy statement/prospectus for our Annual Meeting
and a blue set of materials for the custody and exchange of shares in the
proposed acquisition of our bank by Pacific Community Banking Group.

                                   CORRECTION

    We wish to correct an item of information in those materials. The
Instructions on page 4 state that you would receive five copies of the Custody
Agreement, Letter of Transmittal, Power of Attorney and Offer of Sale (the
"Agreement"). In fact, you received only one copy. THIS IS TO ADVISE YOU THAT
YOU WILL ONLY NEED TO SIGN AND RETURN ONE COPY OF THE AGREEMENT, TOGETHER WITH
YOUR STOCK CERTIFICATE(S).

    Follow the instructions on page 4 of the Instructions regarding how to
complete the Agreement. After you send the signed Agreement to U.S. Stock
Transfer Corporation, a copy of the signature page of your Agreement,
countersigned by U.S. Stock Transfer Corporation, will be returned to you, upon
request. If you wish to retain a copy of the entire text of the Agreement, you
may photocopy it before sending.

    In addition, we wish to notify you that you may, upon request, review or
obtain from Valley Bank a copy of the Valley Bank bylaws, including the
procedure for nomination of directors.

                                    REMINDER:
THE RIGHT TO PARTICIPATE IN THE PUBLIC OFFERING WILL EXPIRE AT 5:00 P.M., JULY
23, 1999, CALIFORNIA TIME. U.S. STOCK TRANSFER CORPORATION MUST RECEIVE THE
AGREEMENT AND STOCK CERTIFICATE(S) BY THAT TIME.