USA Bank Reports Operating Results for the Fiscal Year Ending December 31, 2007

PORT CHESTER, NY reported a net loss of $4.3 million, or $0.75 per share, for the fiscal year ended December 31, 2007. This is an improvement compared to a net loss of $4.5 million, or $1.11 per share, for the fiscal year ended December 31, 2006. Total assets increased to $169.9 million at December 31, 2007, an increase of 61% above the December 31, 2006 level. The Bank's key capital ratios remain well in excess of regulatory requirements, with tier one capital to average assets of 13.21%, tier one capital to risk-weighted assets of 17.04%, and total capital to risk-weighted assets of 18.13%.

USA Bank's loan portfolio grew to $107 million at December 31, 2007, an increase of 54% above the December 31, 2006 level. Total deposits increased to $123 million at December 31, 2007, an increase of 57% above the December 31, 2006 level. President and Chief Executive Officer Ron Gentile stated that the increase in deposits partly reflects the improved location of the Bank's main office, which was moved to 601 North Main Street in Port Chester, NY.

Mr. Gentile also indicated that the local market remains strong for commercial real estate financing and construction loans. The Bank continues to maintain strict underwriting standards and focuses on financing properties primarily in its target market of Westchester County, NY and Fairfield County, CT.

The Bank has not had any exposure to sub-prime loans within its loan portfolio. The average length of time a construction loan remains in portfolio from origination through payoff has not increased. The Bank's home equity and consumer loan portfolios continue to perform well. Non-performing loans of $3.6 million at December 31, 2007, represent exposure to four borrowers. All four loans are all secured by real estate within the New York metropolitan area. In all four instances, recent appraisals indicate that current values should protect the Bank from any further losses, as their current appraised values each exceed current book values of such loans. The Bank has no sub-investment quality securities in its investments portfolio, with the entire portfolio being accorded the highest quality ratings by recognized advisory services, and reflect net unrealized gains of $444 thousand, as of December 31, 2007.

Mr. Gentile stated that while the movement towards profitability appears modest, it should be noted that two components of noninterest expense, professional and legal fees, increased $1.1 million in 2007, compared to 2006. Some of these expenses were one-time occurrences. Mr. Gentile further reported that the Directors instructed management to address noninterest expenses through a Revenue Enhancement and Expense Reduction Committee, and in January 2008, the Bank's Board of Directors approved/ implemented various salary reductions that are expected to result in cost savings approximating $600 thousand.

Finally, Mr. Gentile indicated optimism that the Bank's current conservative underwriting standards and enhanced loan and investment policies should serve to maintain high levels of credit quality within its loan and investment portfolios. Further capital leveraging, coupled with the work of the Revenue Enhancement and Expense Reduction Committee, should produce significantly improved operating results in 2008.

Statements in this earnings release that are not historical facts are considered to be forward-looking statements. Such statements include, but are not limited to, statements regarding management's beliefs and expectations, based upon information available at the time the statements are made, regarding future plans, objectives and performance. All forward-looking statements are subject to risks and uncertainties, many of which are beyond management's control, and actual results and performance may differ significantly from those contained in forward-looking statements. A discussion of the risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements is included in the Bank's periodic reports filed with the Federal Deposit Insurance Corporation, pursuant to the Securities Exchange Act of 1934.

For more information regarding USA Bank, visit our website at www.usa-bankers.com.

Contact: Mr. Ron Gentile President & Chief Executive Officer [phone] USA Bank 601 North Main Street Port Chester, New York 10573