PROMERICA BANK First Quarter 2010 Results Reflect Strong Capitalization and Growth


LOS ANGELES, CA--(Marketwire - April 29, 2010) - PROMÉRICA BANK (OTCBB: PMRA) today reported results for its 2010 first quarter of operations. Highlights of the first quarter ended March 31, 2010 include:

--  Capital ratios in excess of all minimums required to be "Well
    Capitalized" by regulatory agencies, with a Tier 1 leverage ratio of
    18.6% and a Total Risk-Based capital ratio of 24.4% at March 31, 2010.
    Regulatory "Well Capitalized" definitions are 5% for the Tier 1
    leverage ratio and 10% for the Total Risk-Based capital ratio.

--  Total Assets at March 31, 2010 increased to $102.7 million, an
    increase of $23.1 million or 29% from March 31, 2009.

--  Total Loans at March 31, 2010 increased to $73.8 million, an
    increase of $15.3 million or 26% from March 31, 2009.

--  Total Deposits at March 31, 2010 increased to $81.6 million, an
    increase of $23.2 million or 40% from March 31, 2009.

--  Three Month Net Loss of $317,000 for 2010 versus a loss of $852,000 for
    the comparable period of 2009. That represents a reduction of 63% or
    $535,000 from 2009 to 2010.

"In the midst of wide instability in the banking industry, PROMÉRICA BANK continues to offer its clients safety and peace of mind knowing that their Bank has capital well in excess of regulatory requirements to be 'well capitalized,' while maintaining strong liquidity and FDIC insurance to the maximum allowed by law," stated John H. Quinn, President and CEO of PROMÉRICA BANK. "We believe our strength and stability offer security for our clients in these uncertain times." He continued, "We are well positioned to continue to provide capital to the small to medium sized company market place. Certainly challenges in the economy remain and will continue into 2010, but we believe the challenges will also provide opportunities for prudent lending and expansion of our banking franchise."

Net income for the 2010 first quarter was reduced by the addition of $62,000 to the loan loss reserves during the period. The provision for the 2010 first quarter was $167,000 lower than for the same quarter in 2009. The Allowance for Loan and Lease Losses represents 2.74% of total loans. Nonperforming assets, net of government guaranteed loans, totaled $1.7 million, or 1.7% of assets at March 31, 2010.

"We are also pleased to report that PROMÉRICA BANK has been approved by the U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund as a certified CDFI," said Ms. Contreras-Sweet, Chairwoman of the Board. Over the past year, the Obama Administration has made the CDFI Fund one of its key programs in spurring small business development in low-income communities, and Congress recently approved a FY2010 appropriation of $246 million, a record-high appropriation, which more than doubles any previous yearly appropriation. "CDFI Fund awards allow banks to grow and expand into new communities, as well as to implement high-impact programs that meet the financial needs of underserved communities," added Ms. Contreras-Sweet.

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,
                                       2010         2009          2009
                                    -----------  ------------  -----------
                                     Unaudited     Audited      Unaudited

Assets:
  Cash and Due From Banks           $     1,202  $      3,930  $     3,133
  Federal Funds Sold                     18,805        11,875       13,165
  Time Deposits at Other Financial
   Institutions                           8,218         3,841        4,179
                                    ===========  ============  ===========
     Total Cash and Cash
      Equivalents                        28,225        19,646       20,477
                                    -----------  ------------  -----------

  Loans Net of Deferred Loan
   Fees/Costs                            73,789        75,315       58,514
  Allowance for Loan Losses               2,019         2,030        1,171
                                    -----------  ------------  -----------
     Loans Net of Allowance for
      Loan Losses                        71,770        73,285       57,343
 Premises and Equipment, net                695           788        1,079
 Federal Home Loan Bank Stock               232           232          134
 Other Real Estate Owned                    422             0            0
 Accrued Interest Receivable and
  Other Assets                            1,348         1,403          593
                                    -----------  ------------  -----------

    Total Assets                    $   102,692  $     95,354  $    79,626
                                    ===========  ============  ===========

Liabilities:
  Non-Interest-Bearing Demand
   Deposits                         $    19,484  $     17,134  $    14,250

 Interest-Bearing Demand Deposits
  (NOW Deposits)                          2,672         2,963        3,633
 Savings and Money Market                16,646        13,834       11,301
 Certificates of Deposit                 42,815        42,245       29,281
                                    ===========  ============  ===========
    Total Interest-Bearing Deposits      62,133        59,042       44,215
                                    ===========  ============  ===========
    Total Deposits                       81,617        76,176       58,465

  Other Borrowings                        1,929             0            0
  Accrued Interest Payable and
   Other Liabilities                        683           464          732
                                    -----------  ------------  -----------

Total Liabilities                        84,229        76,640       59,197

Shareholders' Equity:
  Common Stock                           27,245        27,245       27,245
  Additional Paid in Capital              1,237         1,170          983
  Accumulated Deficit                   (10,019)       (9,701)      (7,799)
                                    -----------  ------------  -----------
    Total Shareholders' Equity           18,463        18,714       20,429
                                    -----------  ------------  -----------

    Total Liabilities and
     Shareholders' Equity           $   102,692  $     95,354  $    79,626
                                    ===========  ============  ===========

 Tier 1 Leverage Ratio                     18.6%         21.0%        28.0%
 Tier 1 Risk-based Capital Ratio           23.2%         25.0%        33.8%
 Total Risk-based Capital Ratio            24.4%         26.2%        35.1%




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


                                     March 31,   December 31,   March 31,
                                        2010         2009          2009
                                    -----------  ------------  -----------
                                     Unaudited     Audited      Unaudited

Interest Income:
  Interest and Fees on Loans        $     1,188  $      1,203  $       868
  Interest on Federal Funds Sold              9             5            5
  Interest on Balances at Other
   Financial Institutions                    24            18           26
  Dividends on FHLB Stock                     0             0            1
                                    -----------  ------------  -----------
   Total Interest Income                  1,221         1,226          900

Interest Expense:
  Interest on Deposit Accounts              145           138          174
                                    ===========  ============  ===========

  Net Interest Income                     1,076         1,088          726

Provision for Loan Losses                    62         1,181          229
                                    -----------  ------------  -----------

   Net Interest Income After
    Provision for Loan Losses              1,014           (93)         497

Non-Interest Income:
     Non-Interest Income                     33            30           33

Non-Interest Expense:
   Salaries and Employee Benefits           736           713          772
   Stock Based Compensation Expense          67            68           79
   Occupancy Expense                        219           226          225
   Operating Expense                        342           288          306
                                    ===========  ============  ===========
       Total Non-Interest Expense         1,364         1,295        1,382

                                    -----------  ------------  -----------
   Pre-tax Net Loss                        (350)       (1,388)        (885)

Provision for Income Taxes                    0             1            0

   Net Loss                         $      (350) $     (1,389) $      (885)
                                    ===========  ============  ===========

   Loss per share - basic and
    diluted loss per share          $     (0.13) $      (0.51) $     (0.32)
                                    -----------  ------------  -----------

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