PFBN Pacific Alliance Bank (PK)

Pacific Alliance Bank (OTC Bulletin Board:PFBN) is pleased to report its results for the nine month period ending September 30, 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 $51.5 million as of September 30, 2007. Total gross loans were $19.1 million, up from $14.7 million as of June 30th. All loans were current as of September 30, 2007. Total liabilities as of September 30, 2007 were $37 million, including total deposits of $36.4 million. Total nine months revenue before operating expense as of September 30 was $772 thousand, comprised of $1.7 million in interest income and $782 thousand in net interest income. Additionally, the Bank provided $244 thousand for loan losses reserves and benefited from $28 thousand in other non-interest income. Net Operating Loss, typical for a start-up bank, for the nine months was $1.9 million, 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. Pacific Alliance Bank Balance Sheet (Unaudited) $ in 000's � � Assets September 30, 2007 December 31, 2006 � Cash and due from banks $ 580 517 Federal funds sold � 14,305 � 16,620 Cash and Cash Equivalents 14,885 17,137 Investment (net) 16,032 - Loans, net of unearned income 19,111 0 Less allowance for loan losses � (244) � 0 Net Loans 18,867 0 Premises and equipment, net 1,252 1,006 Accrued interest receivable and other assets � 436 � 24 Total Assets $ 51,472 $ 18,167 � Liabilities and Shareholders' Equity � Liabilities Deposits Noninterest-bearing deposits $ 2,149 $ 28 Interest-bearing deposits � 34,260 � 580 Total Deposits 36,410 608 � Investor Seed Money - 1,035 Organization Loan - 700 Accrued interest payable and other liabilities � 609 � 132 Total Liabilities � 37,018 � 2,475 � 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; Additional paid in capital 787 111 Accumulated deficit (2,717) (784) Accumulated other comprehensive loss 19 0 Total Shareholders' Equity � 14,454 � 15,692 Total Liabilities and Shareholders' Equity $ 51,472 $ 18,167 � Book Value per Share 8.72 9.47 Pacific Alliance Bank Statement of Income (Unaudited) $ in 000's � � For Nine Months Ending September 30, 2007 December 31, 2006 Interest Income Interest Income $ 1,720 $ 103 Interest expense � 938 � 5 Net Interest Income 782 98 � Provision for loan losses � 244 � 0 Other Income � 28 � 0 Operating Expenses � 2,498 � 882 � Income Before Provision for Income Taxes (1,932) (784) � Provision for Income Taxes � 1 � 0 � Net Loss $ (1,933) $ (784) � Loss Per Share - Basic $ (1.17) $ (0.47) This press release includes forward-looking information, which is subject to the "safe harbor" created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act and the Private Securities Litigation Reform Act of 1995. When the Bank uses or incorporates by reference in this letter the words "anticipate," "estimate," "expect," "project," "intend," "commit," "believe" and similar expressions, the Bank intends to identify forward-looking statements. Our actual results may differ materially from those projected in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control.�