Premier Service Bank Receives Preliminary Approval to participate in the U.S. Treasury’s Capital Program

February 2, 2009 1:55 PM ET

Premier Service Bank PSBK today announced that the Bank received preliminary approval on January 28, 2009 for an investment of $4 million from the U.S. Department of the Treasury under the Treasury’s Capital Purchase Program. The completion of the sale of $4 million of preferred stock to the Treasury is subject to the completion and execution of several transaction agreements and documents. Subject to the completion of all necessary requirements and conditions, the Bank hopes to close the transaction by the end of the first quarter of 2009.
On a pro forma basis, this investment will increase Premier Service Bank’s Tier 1 leverage capital ratio from a strong 8.50% of total assets to an even stronger 10.96%.
“We are pleased to be selected to participate in the Treasury’s program, which provides funds to healthy banks to fortify the financial markets and economy. We believe this investment represents a strong vote of confidence in Premier Service Bank,” said Kerry Pendergast, President and Chief Executive Officer. “This investment will help the Bank continue to be one of the most highly capitalized banks in the Inland Empire area, and the additional capital will support our efforts to meet the needs our customers and the communities we serve.”
The Capital Purchase Program is designed to encourage healthy U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. financial system. Financial institutions must voluntarily apply to participate, but the Treasury determines the eligibility and allocations for the qualifying institutions.
Premier Service Bank is a California state-chartered bank with two offices, its headquarters office in Riverside and a full-service banking office in Corona. The Bank provides commercial banking services, including a wide variety of checking accounts, investment services with competitive deposit rates, on-line banking products, and real estate, construction, commercial and consumer loans, to small and medium-sized businesses, professionals and individuals. Additional information about Premier Service Bank is available at its website at www.premierservicebank.com.
Forward-looking Statements
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 Premier Service 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 in the following: Premier Service Bank’s ability to increase its assets, deposits and total loans, control expenses, retain critical personnel, manage interest rate risk, manage technological changes, address regulatory requirements, and other risks discussed from time to time in Premier Service Bank’s filings and reports with the Federal Deposit Insurance Corporation. 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 Premier Service Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
For a more complete discussion of risks and uncertainties, investors and security holders are urged to read Premier Service Bank’s annual report on Form 10-K, quarterly reports on Form 10-Q and other reports filed by Premier Service Bank with the FDIC.

Premier Service Bank
Kerry L. Pendergast, President and CEO, or
Jessica Lee, Executive Vice President and CFO
Premier Service Bank: 951-274-2400
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