Manhattan Bancorp Reports Continued Growth and Balance Sheet Strengthat September 30, 2009

http://www.businesswire.com/news/home/20091109006396/en

LOS ANGELES--(Business Wire)--
Manhattan Bancorp ("Company") (OTCBB:MNHN), the holding company of Bank of
Manhattan, N. A. ("Bank"), a national bank, announced that total assets
increased to $110.3 million at September 30, 2009, growth of 54% year over year.
Net loans outstanding grew to $72.0 million, representing an annual increase of
50%. Funding for the loan growth came primarily from an increase in deposits
which totaled $68.8 million at September 30, 2009, representing an increase of
46% from the September 30, 2008 level.

"We continue to focus on building the strongest community banking platform in
our marketplace, which we anticipate will allow for the ability to take
advantage of numerous growth opportunities in the near future," stated Jeffrey
M. Watson, President and Chief Executive Officer. "We believe that by
maintaining a strong credit culture and a solid capital base, we are poised to
capitalize on the current market environment."

At September 30, 2009, the Company`s shareholder equity was $29.1 million. The
total risk-based capital ratio of 38% stands well above the regulatory
definition of "Well Capitalized" level of 10%. Additionally, asset quality
remains strong, with no loans more than 30 days past due, no non-performing
assets and no Other Real Estate Owned.

The provision for loan losses during the quarter was $469 thousand, compared to
$102 thousand in the Third Quarter of 2008 and $454 thousand for the Second
Quarter of 2009. The Bank continues to take a very proactive approach in the
recognition of any potential losses within the loan portfolio. The resultant
loan loss reserve, which represents 1.50% of total loans outstanding, is a level
that reflects the Banks analysis of the risks within the portfolio at September
30, 2009.

As is anticipated for a company in the initial operating stages, Manhattan
Bancorp reported a net loss of $1,274,000 for the quarter ended September 30,
2009. Included in the second quarter expenses are $273 thousand in other
non-cash expenses as well as the aforementioned $469 thousand provision to the
allowance for loan losses.

Bank of Manhattan, which opened for business on August 15, 2007, is a full
service bank headquartered in the South Bay area of Los Angeles, California.
Bank of Manhattan`s primary focus is relationship banking to entrepreneurs,
family-owned and closely-held middle market businesses, real estate investors
and professional service firms. Additional information is available at
www.BankManhattan.com.

FORWARD LOOKING STATEMENTS

Certain matters discussed in this release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward looking statements relate to the Company`s current expectations
regarding deposit and loan growth, operating results and the strength of the
local economy. 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, a decline in economic
conditions and increased competition among financial service providers on Bank
of Manhattan`s operating results, ability to attract deposit and loan customers
and the quality of Bank of Manhattan`s earning assets; (2) government
regulation; and (3) the other risks set forth in the Company`s December 31, 2008
10-K, ITEM 1A. Risk Factors filed with the Securities and Exchange Commission.
The Company 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.

Financial Data-Manhattan Bancorp and Subsidiary
(Unaudited)
Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended
(In thousands) Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2009 2009 2009 2008 2008
Balance Sheet - At Period End
Cash and due from banks $ 1,143 $ 2,148 $ 15,848 $ 19,710 $ 764
Investments and fed funds sold 33,770 27,114 17,085 12,603 19,898
Net loans 71,963 71,154 60,810 56,467 47,994
Other assets 3,394 3,419 3,478 3,260 3,150
Total Assets $ 110,270 $ 103,835 $ 97,221 $ 92,040 $ 71,806

Non-interest-bearing deposits $ 20,908 $ 19,767 $ 15,423 $ 15,379 $ 13,124
Interest-bearing deposits 47,845 39,884 36,468 32,612 33,951
Other borrowings 11,500 11,500 11,500 9,500 4,500
Other liabilities 876 785 586 261 564
Stockholders' equity 29,141 31,899 33,244 34,288 19,667
Total Liabilities and Shareholders' Equity $ 110,270 $ 103,835 $ 97,221 $ 92,040 $ 71,806

Income Statement
Interest income (not tax-equivalent) $ 1,204 $ 1,109 $ 951 $ 909 $ 909
Interest expense 200 179 216 248 310
Net interest income 1,004 930 735 661 599
Provision for loan losses 469 454 174 275 102
Net interest income after provision
for loan losses 535 476 561 386 497
Non-interest income 47 34 17 11 18
Non-interest expense 1,856 1,964 1,811 1,498 1,513
Net Loss $ (1,274 ) $ (1,454 ) $ (1,233 ) $ (1,101 ) $ (998 )

Return on average assets -5.15 % -6.53 % -5.71 % -5.98 % -5.07 %
Return on average equity -16.14 % -17.75 % -14.75 % -21.73 % -19.85 %

Per share:
Net loss - basic $ (0.32 ) $ (0.36 ) $ (0.31 ) $ (0.42 ) $ (0.38 )
Weighted average shares used 3,988 3,988 3,988 2,646 2,616
Book value per common share at period end $ 7.31 $ 7.61 $ 7.94 $ 8.21 $ 7.52
Ending shares 3,988 3,988 3,988 3,988 2,616

Assets Quality & Capital - At Period-End
Non-accrual loans $ - $ - $ - $ - $ -
Loans past due 90 days or more - - - - -
Other real estate owned - - - - -
Total non-performing loans $ - $ - $ - $ - $ -

Allowance for loan loss/total gross loans 1.50 % 1.51 % 1.85 % 1.70 % 1.44 %
Non-accrual loans/total gross loans N/A N/A N/A N/A N/A
Non-performing assets to total assets N/A N/A N/A N/A N/A

Manhattan Bancorp
Jeffrey M. Watson
President/Chief Executive Officer
Phone: (310) 606-8000
Fax: (310) 606-8090
or
Dean Fletcher
Executive Vice President/Chief Financial Officer
Phone: (310) 606-8000
Fax: (310) 606-8090

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