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

LOS ANGELES, CA--(Marketwire - Oct 31, 2011) - Promérica Bank (OTCQB: PMRA) (PINKSHEETS: PMRA) today reported results of operations for its third quarter ended September 30, 2011. Highlights include:

• Three-month Net Income of $285,000 - the Bank's fourth straight profitable quarter.
  
  
• Total Assets at September 30, 2011 increased to $130.1 million, an increase of $16.4 million or 14% from September 30, 2010.
  
  
• Total Loans at September 30, 2011 increased to $100.0 million, an increase of $26.0 million or 35% from September 30, 2010.
  
  
• Total Deposits at September 30, 2011 increased to $106.6 million, an increase of $12.2 million or 13% from September 30, 2010.
  
  
• The Bank received $3.8 million in new capital from the sale of preferred stock to the U.S. Treasury under the Small Business Lending Fund.
  
  
• Capital ratios in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 18.4% and a Total Risk-Based Capital Ratio of 22.6% at September 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 $285,000 for the third quarter of 2011 or 10 cents per share as compared to a net loss of $82,000 or 3 cents per share in the third quarter of 2010. The Bank reported net income of $455,000 or 17 cents per share in the first nine months of 2011 as compared to a loss of $524,000 or 19 cents per share in the first nine months of 2010.
The Allowance for Loan and Lease Losses represents 2.1% of total loans. Nonperforming assets, net of government guaranteed loans, totaled approximately $0.2 million or 0.1% of assets at September 30, 2011.

"With its fourth straight quarter of profitability, Promérica Bank continues to make progress in the market with increases in assets, loans and deposits strengthening its franchise and competitive position in the market," stated Executive Chairwoman Maria Contreras-Sweet. "Promérica's position was further strengthened by its selection -- amid stringent standards -- to participate in the U.S. Treasury's Small Business Lending Fund (SBLF). With a capital investment of $3.8 million by SBLF, the Bank is strategically positioned to provide access to capital to small businesses to build jobs and wealth in the community."

"Our continuing strong performance demonstrates the execution of our plan to become a quality, business-focused and Latino-owned community bank," said John H. Quinn, President and CEO. "We are on target to achieve healthy growth for the year and continue building very strong momentum for our future."

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)
				September 30,				June 30,				December 31,				September 30,
				2011				2011				2010				2010
				Unaudited				Unaudited				Audited				Unaudited
Assets:
	Cash and Due From Banks			$	1,761			$	1,531			$	1,195			$	824
	Federal Funds Sold				20,205				17,395				25,145				28,650
	Interest-bearing Balances at Other Financial Institutions				8,182				8,661				9,181				9,659
		Total Cash and Cash Equivalents			30,148				27,587				35,521				39,133
	Loans Net of Deferred Loan Fees/Costs				100,018				94,945				81,168				73,992
	Allowance for Loan Losses				2,127				2,221				2,058				2,051
		Loans Net of Allowance for Loan Losses			97,891				92,724				79,110				71,941
	Premises and Equipment, net				119				213				408				496
	Federal Home Loan Bank Stock				418				418				364				364
	Other Real Estate Owned				0				0				0				357
	Accrued Interest Receivable and Other Assets				1,502				1,398				1,352				1,345
		Total Assets		$	130,078			$	122,340			$	116,755			$	113,636
Liabilities:
	Non-Interest-Bearing Demand Deposits			$	38,511			$	38,013			$	39,667			$	26,443
	Interest-Bearing Demand Deposits (NOW Deposits)				4,077				5,004				5,187				14,447
	Savings and Money Market				21,820				18,597				15,811				14,591
	Certificates of Deposit				42,227				41,409				37,092				38,906
		Total Interest-Bearing Deposits			68,124				65,010				58,090				67,944
		Total Deposits			106,635				103,023				97,757				94,387
	Other Borrowings				0				0				0				293
	Accrued Interest Payable and Other Liabilities				544				514				512				556
Total Liabilities					107,179				103,537				98,269				95,236
Shareholders' Equity:
	Common Stock				27,245				27,245				27,245				27,245
	Additional Paid in Capital				1,656				1,595				1,448				1,381
	Accumulated Deficit				(9,752	)			(10,037	)			(10,207	)			(10,226	)
	Preferred Stock				3,750				0				0				0
		Total Shareholders' Equity			22,899				18,803				18,486				18,400
		Total Liabilities and Shareholders' Equity		$	130,078			$	122,340			$	116,755			$	113,636
Tier 1 Leverage Ratio					18.4	%			16.0	%			15.8	%			16.5	%
Tier 1 Risk-based Capital Ratio					21.4	%			18.6	%			21.0	%			22.3	%
Total Risk-based Capital Ratio					22.6	%			19.8	%			22.3	%			23.5	%

PROMÉRICA BANK STATEMENT OF OPERATIONS
For the Quarters Indicated
(Dollars in thousands except per share data)
				September 30,			June 30,			December 31,			September 30,
				2011			2011			2010			2010
				Unaudited			Unaudited			Audited			Unaudited
Interest Income:
	Interest and Fees on Loans			$	1,590		$	1,482		$	1,324		$	1,149
	Interest on Federal Funds Sold				10			9			17			19
	Interest on Balances at Other Financial Institutions				16			22			29			31
	Dividends on FHLB and PCBB Stock				0			0			0			0
		Total Interest Income			1,616			1,513			1,370			1,199
Interest Expense:
	Interest on Deposit Accounts				108			100			103			108
	Net Interest Income				1,508			1,413			1,267			1,091
Provision for Loan Losses					0			87			0			0
Net Interest Income After Provisionfor Loan Losses					1,508			1,326			1,267			1,091
Non-Interest Income:
	Non-Interest Income				58			251			73			129
Non-Interest Expense:
	Salaries and Employee Benefits				727			813			720			693
	Stock Based Compensation Expense				62			80			67			67
	Occupancy Expense				222			224			229			222
	Operating Expense				270			313			306			320
		Total Non-Interest Expense			1,281			1,430			1,322			1,302
	Pre-tax Net Income (Loss)				285			147			18			(82	)
Provision for Income Taxes					0			1			0			0
	Net Income (Loss)			$	285		$	146		$	18		$	(82	)
	Income (Loss) per share - basic and diluted loss per share			$	0.10		$	0.05		$	0.01		$	(0.03	)

PROMÉRICA BANK STATEMENT OF OPERATIONS
For the Nine-Month Periods Indicated
(Dollars in thousands except per share data)
				September 30,			September 30,
				2011			2010
				Unaudited			Unaudited
Interest Income:
	Interest and Fees on Loans			$	4,421		$	3,475
	Interest on Federal Funds Sold				33			41
	Interest on Balances at Other Financial Institutions				60			84
	Dividends on FHLB and PCBB Stock				1			1
		Total Interest Income			4,515			3,601
Interest Expense:
	Interest on Deposit Accounts				296			379
	Net Interest Income				4,219			3,222
Provision for Loan Losses					266			62
	Net Interest Income After Provisionfor Loan Losses				3,953			3,160
Non-Interest Income:
	Non-Interest Income				563			264
Non-Interest Expense:
	Salaries and Employee Benefits				2,316			2,053
	Stock Based Compensation Expense				209			210
	Occupancy Expense				668			661
	Operating Expense				867			1,023
		Total Non-Interest Expense			4,060			3,947
	Pre-tax Net Income (Loss)				456			(523	)
Provision for Income Taxes					1			1
	Net Income (Loss)			$	455		$	(524	)
	Income (Loss) per share - basic and diluted loss per share			$	0.17		$	(0.19	)