Pacific Alliance Bank Announces Second Quarter Results

Pacific Alliance Bank (OTCBB: PFBN) continues its growth, reporting its fifth consecutive profitable quarter since the inception of the Bank, supported by ongoing referrals of business operating relationships from shareholders and clients.

We report our operating results for the 2nd quarter ending June 30, 2011, as follows:

• The 2nd Quarter net profit of $14,000, $6,000 lower than the same period 2010, with a net profit of $20,000.

• The net profit per share for the 2nd quarter was $0.01, unchanged from the same period 2010.
• Total Assets increased by $17 million to $103.7 million, or 19.6% growth from $86.7 million at June 30, 2010.
• Loans outstanding increased by $20.5 million to $76.1 million, or 36.8% growth from $55.6 million at June 30, 2010.
• Deposits outstanding increased by $16.8 million to $86.5 million, or 24.2% growth from $69.7 million at June 30, 2010.

• The Bank provided $350,000 for loan losses for the quarter; allowance for loan losses to total gross loans was 2.74% as of June 30, 2011.
• Non-accrual loans, as of June 30, 2011, totaled $2,040,101, comprising of two conventional loans and two SBA 7A loans, SBA-guaranteed portion (75%).

• The Bank continues to be categorized as “well-capitalized” under the regulatory guidelines, with Tier 1 leverage capital ratio of 12.02%, Tier 1 risk-based capital ratio of 18.87%, and Total risk-based capital ratio of 20.15%.

Pacific Alliance Bank continues its mission of delivering business value, serving small to mid-size businesses, owners, and key employees who seek a personal bank ready to meet their banking needs with customized services.

Pacific Alliance Bank is a full-service FDIC insured community bank, headquartered at 8400 E. Valley Blvd., Rosemead, California 91770. For more information, contact Ms. Trish Lomeli-Sproles [phone] or [e-mail] and visit http://www.pacificalliancebank.com.

This document may include forward-looking information, which is subject to the "safe harbor" created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act and the Private Securities Litigation Reform Act of 1995. When the Bank uses or incorporates by reference in this document the words "anticipate," "estimate," "expect," "project," "intend," "commit," "believe" and similar expressions, the Bank intends to identify forward-looking statements. Our actual results may differ materially from those projected in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control.