PROMERICA BANK Reports First Quarter 2011 Earnings


LOS ANGELES, CA--(Marketwire - Apr 27, 2011) - PROMÉRICA BANK (OTCBB: PMRA) today reported results for its 2011 first quarter of operations. Highlights of the first quarter ended March 31, 2011 include:

-- Three Month Net Income of $24,000 for 2011 versus a loss of $317,000 for
   the comparable period of 2010. This is the Bank's second consecutive
   quarterly profit.

-- Total Assets at March 31, 2011 increased to $117.8 million, an increase
   of $15.1 million or 15% from March 31, 2010.

-- Total Loans at March 31, 2011 increased to $85.7 million, an increase
   of $11.9 million or 16% from March 31, 2010.

-- Total Deposits at March 31, 2011 increased to $98.7 million, an increase
   of $17.1 million or 21% from March 31, 2010.

-- Capital ratios in excess of all minimums required to be "Well
   Capitalized" by regulatory agencies, with a Tier 1 leverage ratio of
   16.1% and a Total Risk-Based capital ratio of 21.2% at March 31, 2011.
   Regulatory "Well Capitalized" definitions are 5% for the Tier 1 leverage
   ratio and 10% for the Total Risk-Based capital ratio.

"With net income continuing to improve and assets, loans and deposits all showing solid growth, PROMÉRICA BANK'S Board of Directors is optimistic about our future," said Ms. Contreras-Sweet, Executive Chairwoman of the Board. "We are a local bank serving the communities of Los Angeles and our growth reflects the confidence those communities have in us. We remain committed to our business banking specialty, and our unique skills in the growing Latino business community provide responsive banking where it is most needed."

Net income for the 2011 first quarter was reduced by the addition of $179,000 to the loan loss reserves during the period. The provision for loan losses for the 2011 first quarter was $117,000 higher than for the same quarter in 2010. The Allowance for Loan and Lease Losses represents 2.48% of total loans. Nonperforming assets, net of government guaranteed loans, totaled $1.2 million, or 1.0% of assets at March 31, 2011.

"We are very pleased with another quarter of improved earnings," stated John H. Quinn, President and CEO of PROMÉRICA BANK. "We believe our customers and our staff will enable us to continue with solid growth and improved performance this year. While much uncertainty remains in the economy, our careful and intentional growth is building value for our customers, our community and our Bank."

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)


                                    March 31,   December 31,    March 31,
                                      2011          2010          2010
                                  ------------  ------------  ------------
                                    Unaudited     Audited       Unaudited

Assets:
  Cash and Due From Banks         $      1,661  $      1,195  $      1,202
  Federal Funds Sold                    23,655        25,145        18,805
  Interest on Balances at Other
   Financial Institutions                6,923         9,181         8,218
                                  ============  ============  ============
    Total Cash and Cash
     Equivalents                        32,239        35,521        28,225
                                  ------------  ------------  ------------

  Loans Net of Deferred Loan
   Fees/Costs                           85,725        81,168        73,789
  Allowance for Loan Losses              2,129         2,058         2,019
                                  ------------  ------------  ------------
    Loans Net of Allowance for
     Loan Losses                        83,596        79,110        71,770
  Premises and Equipment, net              312           408           695
  Federal Home Loan Bank Stock             232           364           232
  Other Real Estate Owned                    0             0           422
  Accrued Interest Receivable and
   Other Assets                          1,418         1,352         1,348
                                  ------------  ------------  ------------

    Total Assets                  $    117,797  $    116,755  $    102,692
                                  ============  ============  ============

Liabilities:
  Non-Interest-Bearing Demand
   Deposits                       $     35,352  $     39,667  $     19,484

  Interest-Bearing Demand Deposits
   (NOW Deposits)                        4,768         5,187         2,672
  Savings and Money Market              21,260        15,811        16,646
  Certificates of Deposit               37,354        37,092        42,815
                                  ------------  ------------  ------------
    Total Interest-Bearing
     Deposits                           63,382        58,090        62,133
                                  ============  ============  ============
    Total Deposits                      98,734        97,757        81,617

  Other Borrowings                           0             0         1,929
  Accrued Interest Payable and
   Other Liabilities                       486           512           683
                                  ------------  ------------  ------------

Total Liabilities                       99,220        98,269        84,229

Shareholders' Equity:
  Common Stock                          27,245        27,245        27,245
  Additional Paid in Capital             1,515         1,448         1,237
  Accumulated Deficit                  (10,183)      (10,207)      (10,019)
                                  ------------  ------------  ------------
    Total Shareholders' Equity          18,577        18,486        18,463
                                  ------------  ------------  ------------

    Total Liabilities and
     Shareholders' Equity         $    117,797  $    116,755  $    102,692
                                  ============  ============  ============

  Tier 1 Leverage Ratio                   16.1%         15.8%         18.6%
  Tier 1 Risk-based Capital Ratio         20.0%         21.0%         23.2%
  Total Risk-based Capital Ratio          21.2%         22.3%         24.4%








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


                                      March 31,   December 31,  March 31,
                                         2011         2010         2010
                                     ------------ ------------ -----------
                                      Unaudited    Unaudited    Unaudited

Interest Income:
  Interest and Fees on Loans         $      1,350 $      1,324 $     1,188
  Interest on Federal Funds Sold               13           17           9
  Interest on Balances at Other
   Financial Institutions                      22           29          24
  Dividends on FHLB Stock                       0            0           0
                                     ------------ ------------ -----------
     Total Interest Income                  1,385        1,370       1,221

Interest Expense:
   Interest on Deposit Accounts                87          103         145
                                     ------------ ------------ -----------

   Net Interest Income                      1,298        1,267       1,076

Provision for Loan Losses                     179            0          62
                                     ------------ ------------ -----------

   Net Interest Income After
    Provision for Loan Losses                1,119        1,267       1,014

Non-Interest Income:
     Non-Interest Income                      253           73          33

Non-Interest Expense:
   Salaries and Employee Benefits             776          720         736
   Stock Based Compensation Expense            67           67          67
   Occupancy Expense                          221          229         219
   Operating Expense                          284          306         342
                                     ============ ============ ===========
       Total Non-Interest Expense           1,348        1,322       1,364

Net Income (Loss) from Bank
 Operations                                    24           18        (317)

                                     ------------ ------------ -----------
   Pre-tax Net Income (Loss)                   24           18        (317)

Provision for Income Taxes                      0            0           0

   Net Income (Loss)                 $         24 $         18 $      (317)
                                     ============ ============ ===========

   Net Income (Loss) per share -
    basic and diluted loss per share $       0.01 $       0.01 $     (0.12)
                                     ------------ ------------ -----------

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