the PRIVATE BANK of CALIFORNIA

The Private Bank of California Reports Second Quarter 2011 Results - 
Net Income Improves 140% from Second Quarter 2010

08.04.11

LOS ANGELES (BUSINESS WIRE) – The Private Bank of California (the “Bank”) (OTCBB: PBCA.OB) announced its unaudited financial results for the quarter ended June 30, 2011.

Second Quarter 2011 Highlights:

• Net income for the quarter improved dramatically to $341,000, up 140% from the same quarter in the prior year.  Year-to-date June 30, 2011 net income is $674,000, up an equally impressive 141% from $280,000 in 2010. 
• For the quarter ended June 30, 2011, compared to the quarter ended June 30, 2010, the Bank’s operating leverage improved as net interest income increased $1.3 million or 56% more than the increase in total noninterest expense.
• Total assets grew $142 million or 41% year-over-year to $491 million at June 30, 2011.  “The Bank is fast approaching $500 million in assets, which is exceptional considering where we were eighteen months ago,” noted Chief Executive Officer David R. Misch.
• Total deposits rose 36% to $407 million at June 30, 2011 from $300 million at June 30, 2010.  Demand deposits totaled $163 million and accounted for 40% of total deposits at June 30, 2011 compared to $102 million or 34% of total deposits at June 30, 2010.  To better manage its interest rate risk profile, the Bank began issuing long-term brokered certificates of deposit in December 2010; at June 30, 2011, such deposits totaled $35 million.
• Total earning loans were $270 million at June 30, 2011, an increase of $99 million or 58% from $171 million at June 30, 2010 and $56 million or 26% from $214 million at December 31, 2010.
• Non-accrual loans declined to $150,000 at quarter-end, a significant drop from $1.4 million at year-end 2010 and $5.1 million at June 30, 2010.
• Consistent with its low level of nonperforming loans, the Bank’s allowance for credit losses was $4.5 million or 1.68% of total loans at June 30, 2011, compared to $3.5 million or 2.01% of total loans at June 30, 2010.  The provision for credit losses for the current quarter and year-to-date 2011 totaled $627,000 and is mostly attributable to the significant increase in loans outstanding; the provision for credit losses for the same periods in 2010 was $310,000 and $560,000, respectively, and primarily related to problem credits.
• The Bank’s capital ratios continued to significantly exceed all regulatory guidelines for “well-capitalized” financial institutions:

Richard A. Smith, the Bank’s President, added, “Things are really starting to gel.  The Private Bank is achieving critical mass and the word is getting around.  We are very, very pleased with our position right now.”

The Private Bank of California also announced the launch of its new website and logo at the beginning of the second quarter, testimony to its continued commitment to growth and most importantly its clients.

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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.