PROAMERICA BANK Fourth Quarter 2011 Results Reflect Strong Capitalization and Growth

LOS ANGELES, CA--(Marketwire - Mar 30, 2012) - ProAmérica Bank (OTCQB: PMRA) (PINKSHEETS: PMRA) today reported results of operations for its fourth quarter ended December 31, 2011. Highlights include:

• Total Loans at December 31, 2011 grew to $106.9 million, an increase of $25.7 million or 32% from December 31, 2010.
  
  
• Capital ratios remain well in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 16.5% and a Total Risk-Based Capital Ratio of 20.2% at December 31, 2011. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.
  
  
• Total Assets at December 31, 2011 grew to $129.1 million, an increase of $12.4 million or 11% from December 31, 2010.
  
  
• Total Deposits at December 31, 2011 grew to $105.8 million, an increase of $8.0 million or 8% from December 31, 2010.
  
  

ProAmérica Bank reported a net loss of $1,369,000 for the fourth quarter of 2011 ($0.50 per share) as compared to net income of $18,000 ($0.01 per share) in the fourth quarter of 2010. The Bank reported a net loss of $914,000 ($0.33 per share) for the year ended December 31, 2011 as compared to a loss of $506,000 ($0.18 per share) for the year ended December 31, 2010. The results for the quarter and year ended December 31, 2011 included the impact of a large provision for loan losses of $1,278,000 recorded in the fourth quarter. The provision for loan losses was primarily the result of one problem loan that arose in the fourth quarter.

The Allowance for Loan and Lease Losses represents 2.9% of total loans at December 31, 2011. Nonperforming assets, net of government guaranteed loans, totaled approximately $10.4 million, or 8.1% of assets at December 31, 2011. This represents an increase of $9.8 million over year ago levels. Approximately $5.6 million is paying as agreed. Management believes the Allowance for Loan and Lease Losses is sufficient in light of the higher level of problem loans compared to the previous year.

"We are pleased with the strong growth ProAmérica Bank has continued to show, especially in light of the weak economy," stated Maria Contreras-Sweet, Executive Chairwoman of ProAmérica Bank.

ProAmérica Bank also reported that John H. Quinn, President and CEO, retired from the Bank effective February 28, 2012, as previously announced. Frank Smith, the current Chief Financial Officer, and Stephen Rolfe, the current Chief Credit Officer, were appointed as Interim Co-CEO and President by the Board of Directors, subject to regulatory approval.

ProAmérica Bank provides a full range of financial services, including credit and deposit products, cash management, and internet banking for businesses and high net worth individuals from its headquarters office at 888 West Sixth Street, Second Floor, Los Angeles, CA 90017. Information on products and services may be obtained by calling (213) 613-5000 or visiting the Bank's website at www.proamericabank.com.

NOTE:

This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about ProAmérica Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: ProAmérica Bank's timely implementation of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in ProAmérica Bank's reports and filings with banking regulatory agencies. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and ProAmérica Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

PROAMÉRICA BANK BALANCE SHEETS
(Dollars in thousands)
				December 31,				September 30,				December 31,
				2011				2011				2010
				Audited				Unaudited				Audited
Assets:
	Cash and Due From Banks			$	2,355			$	1,761			$	1,195
	Federal Funds Sold				9,935				20,205				25,145
	Interest-bearing Balances at Other Financial Institutions				9,902				8,182				9,181
		Total Cash and Cash Equivalents			22,192				30,148				35,521
	Loans Net of Deferred Loan Fees/Costs				106,860				100,018				81,168
	Allowance for Loan Losses				3,074				2,127				2,058
		Loans Net of Allowance for Loan Losses			103,786				97,891				79,110
	Premises and Equipment, net				918				119				408
	Federal Home Loan Bank Stock				418				418				364
	Other Real Estate Owned				0				0				0
	Accrued Interest Receivable and Other Assets				1,802				1,502				1,352
		Total Assets		$	129,116			$	130,078			$	116,755
Liabilities:
	Non-Interest-Bearing Demand Deposits			$	31,789			$	38,511			$	39,667
	Interest-Bearing Demand Deposits (NOW Deposits)				3,585				4,077				5,187
	Savings and Money Market				22,649				21,820				15,811
	Certificates of Deposit				47,732				42,227				37,092
		Total Interest-Bearing Deposits			73,966				68,124				58,090
		Total Deposits			105,755				106,635				97,757
	Other Borrowings				0				0				0
	Accrued Interest Payable and Other Liabilities				1,774				544				512
Total Liabilities					107,529				107,179				98,269
Shareholders' Equity:
	Common Stock				27,245				27,245				27,245
	Additional Paid in Capital				1,714				1,656				1,448
	Accumulated Deficit				(11,122	)			(9,752	)			(10,207	)
	SBLF Preferred Stock				3,750				3,750				0
		Total Shareholders' Equity			21,587				22,899				18,486
		Total Liabilities and Shareholders' Equity		$	129,116			$	130,078			$	116,755
Tier 1 Leverage Ratio					16.5	%			18.4	%			15.8	%
Tier 1 Risk-based Capital Ratio					19.0	%			21.4	%			21.0	%
Total Risk-based Capital Ratio					20.2	%			22.6	%			22.3	%

PROAMÉRICA BANK STATEMENTS OF OPERATIONS
For the Quarters Ended
(Dollars in thousands except per share data)
				December 31,				December 31,
				2011				2010
				Unaudited				Unaudited
Interest Income:
	Interest and Fees on Loans			$	1,357			$	1,324
	Interest on Federal Funds Sold				11				17
	Interest on Balances at Other Financial Institutions				17				29
		Total Interest Income			1,385				1,370
Interest Expense:
	Interest on Deposit Accounts				106				103
	Net Interest Income				1,279				1,267
Provison for Loan Losses					1,278				0
		Net Interest Income After Provision for Loan Losses			1				1,267
Non-Interest Income:
		Non-Interest Income			42				73
Non-Interest Expense:
	Salaries and Employee Benefits				699				720
	Stock Based Compensation Expense				67				67
	Occupancy Expense				229				229
	Operating Expense				417				306
		Total Non-Interest Expense			1,412				1,322
	Pre-tax Income (Loss)				(1,369	)			18
Provision for Income Taxes					0				0
	Net Income (Loss)			$	(1,369	)		$	18
	Net Income (Loss) per share - basic and diluted loss per share			$	(0.50	)		$	0.01

PROAMÉRICA BANK STATEMENTS OF OPERATIONS
For the Years Ended December 31
(Dollars in thousands except per share data)
				2011				2010
				Audited				Audited
Interest Income:
	Interest and Fees on Loans			$	5,778			$	4,800
	Interest on Federal Funds Sold				44				58
	Interest on Balances at Other Financial Institutions				77				112
	Dividends on FHLB and PCBB Stock				1				1
		Total Interest Income			5,900				4,971
Interest Expense:
	Interest on Deposit Accounts				402				482
	Net Interest Income				5,498				4,489
Provison for Loan Losses					1,544				62
	Net Interest Income After Provision for Loan Losses				3,954				4,427
Non-Interest Income:
		Non-Interest Income			604				338
Non-Interest Expense:
	Salaries and Employee Benefits				3,015				2,772
	Stock Based Compensation Expense				276				278
	Occupancy Expense				921				891
	Operating Expense				1,259				1,329
		Total Non-Interest Expense			5,471				5,270
	Pre-tax Loss				(913	)			(505	)
Provision for Income Taxes					1				1
	Net Loss			$	(914	)		$	(506	)
	Net Loss per share - basic and diluted loss per share			$	(0.33	)		$	(0.18	)