Pacific Alliance Bank Announces Third Quarter Results

ROSEMEAD, Calif.--(Business Wire)--Pacific Alliance Bank (OTCBB:PFBN) is pleased to report its
results for the year ending December 31, 2007.

From its opening with a capital account of $16.4 million, the
Bank's assets increased from $18.2 million as of December 31, 2006 to
$52.7 million as of December 31, 2007.

Total gross loans were $25.7 million, up from $19.1 million as of
September 30th. All loans were current as of December 31, 2007.

Total liabilities as of December 31, 2007 were $38.5 million,
including total deposits of $36.3 million.

Total revenue for the year of 2007 before operating expense was
$2,502 thousand, comprised of $2,463 thousand in interest income and
$1,136 thousand in net interest income. Additionally, the Bank
provided $311 thousand for loan losses reserves and benefited from $39
thousand in other non-interest income.

Net Operating Loss for the year of 2007 was $2,393 thousand,
including stock option expenses.

Pacific Alliance Bank was formed to achieve its mission of
delivering business value in its market, serving small to mid-size
businesses, owners, and key employees who seek a personal bank ready
to meet their needs with customized services.

Pacific Alliance Bank is a full-service FDIC insured community
bank, headquartered at 8400 E. Valley Blvd., Rosemead, California
91770. For more information, contact Ms. Trish Lomeli-Sproles (626)
773-8897 or tsproles@pacificalliancebank.com and visit
http://www.pacificalliancebank.com.

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Pacific Alliance Bank
Balance Sheet (unaudited)
December 31, 2007 & 2006
$ in 000's

Assets 2007 2006

Cash and due from banks $ 685 $ 517
Federal funds sold 7,950 16,620
-------- --------
Cash and Cash Equivalents 8,635 17,137
Investment (net) 17,014 -
Loans, net of unearned income 25,666 0
Less allowance for loan losses (311) 0
-------- --------
Net Loans 25,355 0
Premises and equipment, net 1,160 1,006
Accrued interest receivable and other assets 523 24
-------- --------
Total Assets $52,687 $18,167
======== ========

Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest-bearing deposits $ 3,109 $ 28
Interest-bearing deposits 33,233 580
-------- --------
Total Deposits 36,342 608

Investor Seed Money - 1,035
Organization Loan - 700
Other borrow money (FHLB Advance) 1,900 -
Accrued interest payable and other liabilities 283 132
-------- --------
Total Liabilities $38,525 $ 2,475
-------- --------

Commitments and Contingencies

Shareholders' Equity
Common stock, no par value, 5,000,000 shares
authorized; 1,657,686 shares issued & outstanding 16,365 16,365
Preferred Stock, no par value, 5,000,000 shares
authorized; 0 share issue & outstanding 0 0
Additional paid in capital 972 111
Accumulated deficit (3,177) (784)
Accumulated other comprehensive loss 2 0
Total Shareholders' Equity 14,162 15,692
-------- --------
Total Liabilities and Shareholders' Equity $52,687 $18,167
======== ========

Book Value per Share 8.54 9.47
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Pacific Alliance Bank
Statement of Income for the Years Ended 2007 & 2006 (unaudited)
$ in 000's

2007 2006

Interest Income
Interest and fees on loans $ 1,048 $ 0
Interest on Federal funds sold 865 83
Interest on securities 550 20
-------- -------
Total Interest Income 2,463 103
Interest Expense
Interest expense on deposits 1,327 5
-------- -------
1,327 5
-------- -------
Net Interest Income 1,136 98

Provision for loan losses 311 0
-------- -------

Net Interest Income After
Provision for Loan Losses 825 98
-------- -------
Other Income
Service charges on deposit accounts 1 0
Other non-interest income 38 0
-------- -------
Total Other Income 39 0
-------- -------
Other Expenses
Salaries and other employee benefits (1) 1,579 305
Premises & Equipment 370 254
Legal fees 21 50
Professional fees 196 98
Other (1) 1,090 175
-------- -------
Total Operating Expenses 3,256 882
-------- -------

Income Before Provision for Income Taxes (2,392) (784)

Provision for Income Taxes 1 0
-------- -------

Net Loss $(2,393) $ (784)
======== =======

Loss Per Share - Basic $ (1.44) $(0.47)
======== =======
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Pacific Alliance Bank
Statement of Cash Flow (unaudited)
For the Years Ended 2007 & 2006
$ in 000's

2007 2006
Operating Activities
Net income $ (2,393) $ (784)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 125 -
Provision for loan loss 311 -
Share-based compensation expense (1) 861 111
Increase in accrued interest receivable
and other assets (499) (24)
Increase in accrued interest payable and
other liabilities 315 1,867
--------- --------
Net Cash Provided by Operating
Activities (1,280) 1,170
--------- --------
Investing Activities
Purchases of investment securities available-
for-sale (17,011) -
Purchases of premises and equipment (279) (1,006)
Net increase in loans (25,666) -
--------- --------
Net Cash Used in Investing
Activities (42,956) (1,006)
--------- --------
Financing Activities
Net increase in deposits 35,734 608
Proceeds from initial capitalization - 16,577
Organization expenses, net - (212)
--------- --------
Net Cash Provided by Financing
Activities 35,734 16,973
--------- --------
Net Increase in Cash and Cash Equivalents (8,502) 17,137
Cash and Cash Equivalents, Beginning of Year 17,137 -
--------- --------
Cash and Cash Equivalents, End of Period $ 8,635 $17,137
========= ========

Note (1): Beginning in fiscal year 2006 all companies that utilize
equity compensation will be required to recognize the cost of that
compensation in their financial statements pursuant to FASB's
revision to Statement No. 123, Accounting for Stock-Based
Compensation (SFAS No. 123R). The bank's equity total stock based
compensation for fiscal year was $111 thousand, and $861 thousand for
year 2006 & 2007 respectively.
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Pacific Alliance Bank
Shareholders Equity
For the Year Ended 2007
$ in 000's

Additional
Shares Common Paid In Comprehensive
Outstanding Stock Capital Loss
----------- ------- ---------- -------------

Balance, January 1, 2007 1,657,686 $16,365 $111

Share-based compensation
expense (1) 861
Net loss (1) (2,393)
Unrealized gains (losses) 2

-------------
Total Comprehensive loss $(2,391)
=============

----------- ------- ----------
Balance, December 31,
2007 1,657,686 $16,365 $972
=========== ======= ==========

Accumulated
Other
Accumulated Comprehensive
Deficit Loss Total
------------------------- --------

Balance, January 1, 2007 $ (784) $- $15,692

Share-based compensation expense
(1) 861
Net loss (1) (2,393) (2,393)
Unrealized gains (losses) 2 2

Total Comprehensive loss

------------------------- --------
Balance, December 31, 2007 $(3,177) $2 $14,162
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PAB
Trish Lomeli-Sproles, Public Relations
626-773-8897
tsproles@pacificalliancebank.com

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