On February 20, 2013, the Board of Directors of Pacific Financial Corp. elected John Van Dijk to serve as a director of the company. Mr. Van Dijk will be compensated for his services as a director consistent with the company's compensation policies for nonemployee directors generally.

Mr. Van Dijk was elected to fill a vacancy resulting from the Board's approval of a new position on the Board, which was assigned to Class C. Mr. Van Dijk is expected to be appointed to the Board's Audit Committee. Mr. Van Dijk retired as Secretary of the company and President and Chief Operating Officer of Bank of the Pacific, the company's wholly owned banking subsidiary, on December 31, 2012. The company expects that Mr. Van Dijk will stand for election by shareholders at the 2013 annual meeting of shareholders even though the term of other Class C directors will not expire until the 2014 annual meeting.