the PRIVATE BANK of CALIFORNIA

The Private Bank of California Reports December 31, 2011 Results

Milestone Achievements for Earnings and Balance Sheet Growth

02.10.12

The Private Bank of California (the “Bank”) (OTCBB: PBCA.OB) announced its unaudited financial results for the year and quarter ended December 31, 2011.

2011 Financial Highlights:

• Net income totaled $1,962,000 for the year ended December 31, 2011, the highest in the Bank’s history and up from $105,000 in 2010.  Net income for the quarter was $405,000, improving from a net loss of $236,000 for the same quarter in 2010.

• The Bank’s operating leverage improved significantly in the year ended December 31, 2011 as net interest income increased $2,274,000 more than the increase in total noninterest expense compared to 2010.  As a result, the Bank’s efficiency ratio improved from 98% for the year ended December 31, 2010 to 83% for the year ended December 31, 2011.

• Total assets grew an impressive $161 million or 37% year-over-year and $30 million or 5% from the linked quarter to a record $597 million at December 31, 2011.

• Total deposits rose $114 million or 30% from December 31, 2010 and $13 million or 3% from the linked quarter to $497 million at December 31, 2011.  Demand deposits totaled $230 million and accounted for 46% of total deposits at yearend 2011.

• Total earning loans were $299 million at December 31, 2011, an increase of $85 million or 40% from yearend 2010 and $27 million or 10% from the linked quarter.

• Total nonaccrual loans were $2.8 million at December 31, 2011, representing less than 1% of total loans outstanding.  The Bank had no earning loans past due 90 days or more at December 31, 2011.

• The allowance for credit losses was $5.3 million or 1.76% of total loans outstanding at December 31, 2011.  The provision for credit losses for the year ended December 31, 2011 totaled $1.6 million and is primarily attributable to loan growth; the provision for credit losses for the year ended December 31, 2010 was $1.2 million and primarily related to problem credits.  Net loan charge-offs only totaled $100,000 for the year ended December 31, 2011, comparing favorably with net loan charge-offs of $1.2 million for the year ended December 31, 2010.

• Capital ratios remain strong, continuing to significantly exceed all regulatory guidelines for “well-capitalized” financial institutions:

“The Private Bank of California had a milestone year in 2011,” stated Chief Executive Officer David R. Misch.  “Our balance sheet grew impressively during the year as total assets approached $600 million, total earning loans approached $300 million and total deposits approached $500 million at December 31, 2011.  Credit quality and our capital ratios remained strong.  Most importantly, we achieved a record net income of nearly $2 million and significantly improved our operating leverage.”

"In 2011, we saw many of the pieces come together - new clients, colleagues and offices strengthened our capabilities in several areas," said Richard A. Smith, President of the Bank.  "This year, we will be introducing improved technology and products that will give us the tools we need to capture additional market share.  We are extremely excited about 2012," he continued.

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Forward-Looking Statements: Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements relate to The Private Bank of California’s current expectations regarding deposit and loan growth and operating results.  These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements.  These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, (2) a decline in economic conditions, (3) an increase in competition among financial service providers impacting on the Bank’s operating results and ability to attract deposit and loan customers and the quality of the Bank’s earning assets and (4) an increase in government regulation.  The Bank does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.