PROMERICA BANK Second Quarter 2010 Results Reflect Strong Capitalization and Growth


LOS ANGELES, CA--(Marketwire - July 30, 2010) - PROMÉRICA BANK (OTCBB: PMRA) today reported results of operations for its second quarter ended June 30, 2010. Highlights include:


--  Capital ratios in excess of all minimums required to be "Well
    Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of
    18.0% and a Total Risk-Based Capital Ratio of 25.0% at June 30, 2010.
    Regulatory "Well Capitalized" definitions are 5% for the Tier 1
    Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.

--  Total Assets at June 30, 2010 increased to $109.2 million, an increase
    of $35.5 million or 48% from June 30, 2009.

--  Total Loans at June 30, 2010 increased to $70.3 million, an increase of
    $3.8 million or 6% from June 30, 2009.

--  Total Deposits at June 30, 2010 increased to $88.9 million, an increase
    of $35.4 million or 66% from June 30, 2009.

--  Net Loss of $125,000 for the quarter ended June 30, 2010 versus a loss
    of $859,000 for the comparable period of 2009, representing a reduction
    of 85% or $734,000 from 2009 to 2010.


PROMÉRICA BANK reported a net loss of $125,000 for the second quarter of 2010 or 5 cents per share as compared to a net loss of $859,000 or 49 cents per share in the second quarter of 2009. This represents an 85% improvement from the same period in 2009. The Bank reported a net loss of $442,000 or 16 cents a share in the first six months of 2010 as compared to a loss of $1,711,000 or 62 cents a share in the first six months of 2009. Net income for the 2010 second quarter included a $42,000 gain on the sale of approximately $900,000 of SBA loans.

The Allowance for Loan and Lease Losses represents 2.9% of total loans. Nonperforming assets, net of government guaranteed loans, totaled approximately $1.6 million, or 1.5% of assets at June 30, 2010.

"We are pleased by the progress the Bank is making as it continues its strong growth in this challenging economy," stated John H. Quinn, President and CEO of PROMÉRICA BANK. "Our team continues to work hard to provide the highest levels of client service and convince prospects of what our team can do to help them build their companies. In the midst of wide instability in the banking industry, PROMÉRICA BANK continues to offer its clients safety and peace of mind knowing that their Bank has capital well in excess of regulatory requirements to be 'well capitalized,' while maintaining strong liquidity and FDIC insurance to the maximum allowed by law. We believe our strength and stability offer security for our clients in these uncertain times."

"The Directors and I are pleased by the performance results of the executive management team led by John Quinn," asserted Maria Contreras-Sweet, Founding Chairwoman of PROMÉRICA BANK. "We remain steadfast on our strong growth path and are well positioned to continue to provide capital to the small to medium sized company market place. Challenges in the economy remain and will continue into 2010; however, we believe the challenges will also provide opportunities for prudent lending and expansion of our banking franchise."

"We are also pleased to report that PROMÉRICA BANK continues to add top quality personnel to the team with the hiring of John Murillo, Vice President -- Senior Relationship Manager," added Ms. Contreras-Sweet. "John's client service style meshes well with our consultative approach to client service."

PROMÉRICA 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 S. Figueroa Street, 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.PROMERICAbank.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 PROMÉRICA 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: PROMÉRICA 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 PROMÉRICA 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 PROMÉRICA BANK does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.


                      PROMÉRICA BANK  BALANCE SHEETS
                          (Dollars in thousands)



                             June 30,   March 31,  December 31,  June 30,
                               2010        2010        2009        2009
                            ----------  ----------  ----------  ----------
                            Unaudited   Unaudited     Audited   Unaudited

Assets:
  Cash and Due From Banks   $    2,741  $    1,202  $    3,930  $    1,371
  Federal Funds Sold            26,205      18,805      11,875           0
  Interest-bearing Balances
   at Other Financial
   Institutions                  9,417       8,218       3,841       5,321
                            ----------  ----------  ----------  ----------
     Total Cash and Cash
      Equivalents               38,363      28,225      19,646       6,692
                            ----------  ----------  ----------  ----------

  Loans Net of Deferred
   Loan Fees/Costs              70,311      73,789      75,315      66,493
  Allowance for Loan Losses      2,040       2,019       2,030       1,221
                            ----------  ----------  ----------  ----------
     Loans Net of Allowance
      for Loan Losses           68,271      71,770      73,285      65,272
  Premises and Equipment,
   net                             594         695         788         973
  Federal Home Loan Bank
   Stock                           364         232         232         232
  Other Real Estate Owned          390         422           0           0
  Accrued Interest
   Receivable and Other
   Assets                        1,257       1,348       1,403         571
                            ----------  ----------  ----------  ----------

     Total Assets           $  109,239  $  102,692  $   95,354  $   73,740
                            ----------  ----------  ----------  ----------

Liabilities:
  Non-Interest-Bearing
   Demand Deposits          $   22,760  $   19,484  $   17,134  $   10,928

  Interest-Bearing Demand
   Deposits (NOW Deposits)       6,328       2,672       2,963       2,646
  Savings and Money Market      17,525      16,646      13,834      12,756
  Certificates of Deposit       42,298      42,815      42,245      27,136
                            ----------  ----------  ----------  ----------
     Total Interest-Bearing
      Deposits                  66,151      62,133      59,042      42,538
                            ----------  ----------  ----------  ----------
     Total Deposits             88,911      81,617      76,176      53,466

  Other Borrowings               1,296       1,929           0           0
  Accrued Interest Payable
   and Other Liabilities           617         683         464         632
                            ----------  ----------  ----------  ----------

Total Liabilities               90,824      84,229      76,640      54,098

Shareholders' Equity:
  Common Stock                  27,245      27,245      27,245      27,245
  Additional Paid in
   Capital                       1,314       1,237       1,170       1,056
  Accumulated Deficit          (10,144)    (10,019)     (9,701)     (8,659)
                            ----------  ----------  ----------  ----------
     Total Shareholders'
      Equity                    18,415      18,463      18,714      19,642
                            ----------  ----------  ----------  ----------

     Total Liabilities and
      Shareholders' Equity  $  109,239  $  102,692  $   95,354  $   73,740
                            ----------  ----------  ----------  ----------

  Tier 1 Leverage Ratio           18.0%       18.6%       21.0%       25.5%
  Tier 1 Risk-based Capital
   Ratio                          23.7%       23.2%       25.0%       29.7%
  Total Risk-based Capital
   Ratio                          25.0%       24.4%       26.2%       31.0%






                  PROMÉRICA BANK STATEMENTS OF OPERATIONS
                        For the Quarters Indicated
               (Dollars in thousands except per share data)



                             June 30,   March 31,  December 31,  June 30,
                               2010        2010        2009        2009
                            ----------  ----------  ----------  ----------
                            Unaudited   Unaudited     Audited   Unaudited

Interest Income:
  Interest and Fees on
   Loans                    $    1,138  $    1,188  $    1,203  $      982
  Interest on Federal Funds
   Sold                             14           9           5           3
  Interest on Balances at
   Other Financial
   Institutions                     29          24          18          26
  Dividends on FHLB and
   PCBB Stock                        0           0           0           4
                            ----------  ----------  ----------  ----------
    Total Interest Income        1,181       1,221       1,226       1,015

Interest Expense:
  Interest on Deposit
   Accounts                        126         145         138         136
                            ----------  ----------  ----------  ----------

  Net Interest Income            1,055       1,076       1,088         879

Provision for Loan Losses            0          62       1,181         407
                            ----------  ----------  ----------  ----------

   Net Interest Income
    After Provision for
    Loan Losses                  1,055       1,014         (93)        472

Non-Interest Income:
     Non-Interest Income           103          33          30          34

Non-Interest Expense:
  Salaries and Employee
   Benefits                        623         736         713         755
  Stock Based Compensation
   Expense                          76          67          68          74
  Occupancy Expense                221         219         226         232
  Operating Expense                362         342         288         304
                            ----------  ----------  ----------  ----------
      Total Non-Interest
       Expense                   1,282       1,364       1,295       1,365

Net Loss from Bank
 Operations                       (124)       (317)     (1,358)       (859)

                            ----------  ----------  ----------  ----------
   Pre-tax Net Loss               (124)       (317)     (1,358)       (859)

Provision for Income Taxes           1           0           1           0

   Net Loss                 $     (125) $     (317) $   (1,359) $     (859)
                            ----------  ----------  ----------  ----------
   Loss per share - basic
    and diluted loss per
    share                   $    (0.05) $    (0.12) $    (0.49) $    (0.31)
                            ----------  ----------  ----------  ----------






                  PROMÉRICA BANK STATEMENTS OF OPERATIONS
                  For the Year-to-Date Periods Indicated
               (Dollars in thousands except per share data)



                                                     June 30,    June 30,
                                                       2010        2009
                                                    ----------  ----------
                                                    Unaudited   Unaudited

Interest Income:
  Interest and Fees on Loans                        $    2,326  $    1,850
  Interest on Federal Funds Sold                            23           8
  Interest on Balances at Other Financial
   Institutions                                             53          52
  Dividends on FHLB Stock                                    0           5
                                                    ----------  ----------
    Total Interest Income                                2,402       1,915

Interest Expense:
  Interest on Deposit Accounts                             271         310
                                                    ----------  ----------

  Net Interest Income                                    2,131       1,605

Provision for Loan Losses                                   62         636
                                                    ----------  ----------

  Net Interest Income After Provision
   for Loan Losses                                       2,069         969

Non-Interest Income:
     Non-Interest Income                                   136          67

Non-Interest Expense:
   Salaries and Employee Benefits                        1,359       1,527
   Stock Based Compensation Expense                        143         152
   Occupancy Expense                                       440         457
   Operating Expense                                       704         611
                                                    ----------  ----------
       Total Non-Interest Expense                        2,646       2,747

Net Loss from Bank Operations                             (441)     (1,711)

                                                    ----------  ----------
   Pre-tax Net Loss                                       (441)     (1,711)

Provision for Income Taxes                                   1           0

   Net Loss                                         $     (442) $   (1,711)
                                                    ----------  ----------

   Loss per share - basic and diluted loss
    per share                                       $    (0.16) $    (0.62)
                                                    ----------  ----------

Contact Information: Contact: PROMERICA BANK Maria Contreras-Sweet Chairwoman 213.787.2802 John H. Quinn CEO / President 213.787.2803 Frank E. Smith CFO 213.787.2804