Pacific Alliance Bank Announces Third Quarter Results

ROSEMEAD, Calif.--(BUSINESS WIRE)--Pacific Alliance Bank (OTCBB:PFBN) announced today its third quarter 2008 results, with highlights as follows:

• Total Assets increased $12.1 million to $63.5 million, or 23.5% growth from $51.4 million at September 30, 2007, and increased 20.68% from $52.7 million at December 31, 2007.
• Loans outstanding increased $16.5 million to $35.6 million, or 86.09% increase from $19.1 million at September 30, 2007, and increased 38.56% from $25.7 million at December 31, 2007.
• Deposits grew by 24.52% to $45.4 million from $36.5 million at September 30, 2007, and grew 25% from $36.3 million at December 31, 2007.

• Provision for loan losses was $72,000, with allowance for loan losses to total loans at 1.43%.
• As of September 30, 2008, all Bank loans were current, except for one. This loan was technically past due 34 days, due to the borrower’s being out of country on an extended trip at and subsequent to the line renewal date. This loan is now current.
• The Bank continued to be categorized as “well-capitalized” under the regulatory guidelines, with Tier 1 leverage capital ratio of 22.34%, Tier 1 risk-based capital ratio of 31.86%, and Total risk-based capital ratio of 33.10%.

The operating loss for 3^rd quarter 2008 was lower than the same quarter last year, ($542,000) or (33 cents) per share for 3^rd quarter 2008, and ($688,000), or (40 cents) per share for the third quarter of 2007.

The operating loss for the nine months ended September 30, 2008 was much lower than the period in the prior year. For the nine months ended September 30, 2008, the loss was ($1,353,000), or (82 cents) per share, compared with loss of ($1,934,000), or (117 cents) per share for the same period last year.

Pacific Alliance Bank was formed to achieve its mission of delivering business value in its market, 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.