PROMERICA BANK Second Quarter 2011 Results Reflect Record Operating Profits, Strong Capitalization and Growth

LOS ANGELES, CA--(Marketwire - Jul 28, 2011) - PROMÉRICA BANK (OTCQB: PMRA) (PINKSHEETS: PMRA) today reported results of operations for its second quarter ended June 30, 2011. Highlights include:

• Three-month Net Income of $146,000 -- the Bank's third straight profitable quarter.

• Total Assets at June 30, 2011 increased to $122.3 million, an increase of $13.1 million or 12% from June 30, 2010.

• Total Loans at June 30, 2011 increased to $94.9 million, an increase of $24.6 million or 35% from June 30, 2010.

• Total Deposits at June 30, 2011 increased to $103.0 million, an increase of $14.1 million or 16% from June 30, 2010.

• Capital ratios in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 16.0% and a Total Risk-Based Capital Ratio of 19.8% at June 30, 2011. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.

PROMÉRICA BANK reported net income of $146,000 for the second quarter of 2011 or 5 cents per share as compared to a net loss of $125,000 or 5 cents per share in the second quarter of 2010. The Bank reported net income of $170,000 or 6 cents a share in the first six months of 2011 as compared to a loss of $442,000 or 16 cents a share in the first six months of 2010.

The Allowance for Loan and Lease Losses represents 2.3% of total loans. Nonperforming assets, net of government guaranteed loans, totaled approximately $1.1 million or 0.9% of assets at June 30, 2011.

"PROMÉRICA BANK'S performance has shown strength across the board in net income, assets, loans and deposits, which is attributable to our unique positioning and growing loyalties in entrepreneurial-minded communities," said Executive Chairwoman Maria Contreras-Sweet. "While some of our country's largest financial institutions continue to be plagued by the lingering effects of the financial crisis, we are confident of our continued ability to build the PROMÉRICA franchise with our unwavering dedication to helping our clients expand their businesses, build family wealth and create jobs in the region."

"This emerging profitability reflects the efforts of our outstanding staff to deal with the challenges facing banks today and to create the momentum of growth and profitability we desire. I am very pleased with this progress, and look forward to a bright future ahead," said John H. Quinn, President and CEO.

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,
				2011				2011				2010				2010
				Unaudited				Unaudited				Audited				Unaudited
Assets:
	Cash and Due From Banks			$	1,531			$	1,661			$	1,195			$	2,741
	Federal Funds Sold				17,395				23,655				25,145				26,205
	Interest-bearing Balances at Other Financial Institutions				8,661				6,923				9,181				9,417
		Total Cash and Cash Equivalents			27,587				32,239				35,521				38,363
	Loans Net of Deferred Loan Fees/Costs				94,945				85,725				81,168				70,311
	Allowance for Loan Losses				2,221				2,129				2,058				2,040
		Loans Net of Allowance for Loan Losses			92,724				83,596				79,110				68,271
	Premises and Equipment, net				213				312				408				594
	Federal Home Loan Bank Stock				418				232				364				364
	Other Real Estate Owned				0				0				0				390
	Accrued Interest Receivable and Other Assets				1,398				1,418				1,352				1,257
		Total Assets		$	122,340			$	117,797			$	116,755			$	109,239
Liabilities:
	Non-Interest-Bearing Demand Deposits			$	38,013			$	35,352			$	39,667			$	22,760
	Interest-Bearing Demand Deposits (NOW Deposits)				5,004				4,768				5,187				6,328
	Savings and Money Market				18,597				21,260				15,811				17,525
	Certificates of Deposit				41,409				37,354				37,092				42,298
		Total Interest-Bearing Deposits			65,010				63,382				58,090				66,151
		Total Deposits			103,023				98,734				97,757				88,911
	Other Borrowings				0				0				0				1,296
	Accrued Interest Payable and Other Liabilities				514				486				512				617
Total Liabilities					103,537				99,220				98,269				90,824
Shareholders' Equity:
	Common Stock				27,245				27,245				27,245				27,245
	Additional Paid in Capital				1,595				1,515				1,448				1,314
	Accumulated Deficit				(10,037	)			(10,183	)			(10,207	)			(10,144	)
		Total Shareholders' Equity			18,803				18,577				18,486				18,415
		Total Liabilities and Shareholders' Equity		$	122,340			$	117,797			$	116,755			$	109,239
	Tier 1 Leverage Ratio				16.0	%			16.1	%			15.8	%			18.0	%
	Tier 1 Risk-based Capital Ratio				18.6	%			20.0	%			21.0	%			23.7	%
	Total Risk-based Capital Ratio				19.8	%			21.2	%			22.3	%			25.0	%

PROMÉRICA BANK STATEMENTS OF OPERATIONS
For the Quarters Indicated
(Dollars in thousands except per share data)
					June 30,				March 31,				December 31,				June 30,
					2011				2011				2010				2010
					Unaudited				Unaudited				Unaudited				Unaudited
Interest Income:
	Interest and Fees on Loans				$	1,482			$	1,350			$	1,324			$	1,138
	Interest on Federal Funds Sold					9				13				17				14
	Interest on Balances at Other Financial Institutions					22				22				29				29
		Total Interest Income				1,513				1,385				1,370				1,181
Interest Expense:
	Interest on Deposit Accounts					100				87				103				126
	Net Interest Income					1,413				1,298				1,267				1,055
Provision for Loan Losses						87				179				0				0
		Net Interest Income After Provision for Loan Losses				1,326				1,119				1,267				1,055
Non-Interest Income:
		Non-Interest Income				251				253				73				103
Non-Interest Expense:
	Salaries and Employee Benefits					813				776				720				623
	Stock Based Compensation Expense					80				67				67				76
	Occupancy Expense					224				221				229				221
	Operating Expense					313				284				306				362
		Total Non-Interest Expense				1,430				1,348				1,322				1,282
Net Income (Loss) from Bank Operations						147				24				18				(124	)
	Pre-tax Net Income (Loss)					147				24				18				(124	)
Provision for Income Taxes						1				0				0				1
	Net Income (Loss)				$	146			$	24			$	18			$	(125	)
	Earnings (Loss) per share - basic and diluted earnings (loss) per share				$	0.05			$	0.01			$	0.01			$	(0.05	)

PROMÉRICA BANK STATEMENTS OF OPERATIONS
For the Year-to-Date Periods Indicated
(Dollars in thousands except per share data)
				June 30,			June 30,
				2011			2010
				Unaudited			Unaudited
Interest Income:
	Interest and Fees on Loans			$	2,832		$	2,326
	Interest on Federal Funds Sold				22			23
	Interest on Balances at Other Financial Institutions				44			53
		Total Interest Income			2,898			2,402
Interest Expense:
	Interest on Deposit Accounts				187			271
	Net Interest Income				2,711			2,131
Provision for Loan Losses					266			62
		Net Interest Income After Provision for Loan Losses			2,445			2,069
Non-Interest Income:
		Non-Interest Income			504			136
Non-Interest Expense:
	Salaries and Employee Benefits				1,589			1,359
	Stock Based Compensation Expense				147			143
	Occupancy Expense				445			440
	Operating Expense				597			704
		Total Non-Interest Expense			2,778			2,646
Net Income (Loss) from Bank Operations					171			(441	)
	Pre-tax Net Income (Loss)				171			(441	)
Provision for Income Taxes					1			1
	Net Income (Loss)			$	170		$	(442	)
	Earnings (Loss) per share - basic and diluted earnings (loss) per share			$	0.06		$	(0.16	)