Type                    Amount           % of Total
                                                        Portfolio
-------------------------------- ----------------- -------------------
Commercial Loans                           $21,253               21.9%
Real Estate - Construction Loans            26,673               27.4%
Real Estate - Other                         47,187               48.5%
Consumer Loans                               2,148                2.8%
                                 ----------------- -------------------
       Total                               $97,261              100.0%

For the quarter ended June 30, 2007, the bank reported net income of $108,000, representing a 78% decrease when compared to the $484,000 of net income reported for the second quarter of 2006. This variance was due in part to the bank's income becoming fully taxable in the fourth quarter of 2006. During the second quarter of 2006, the bank enjoyed a tax benefit of $75,000 from pre-opening expenses and initial period losses. Those tax benefits were fully utilized by the end of the third quarter of 2006. As a result, the tax benefit of $75,000 reported for the second quarter of 2006 was replaced by a tax expense of $60,000; a $135,000 difference between periods. This variance accounts for 35% of the decline in net income between periods.

Additionally, the bank experienced a 21% increase in its Non-Interest Expense between periods, which can be attributed to expenses associated with the opening of the bank's Small Business Administration (SBA) Department, as well as to other expenses associated with expanding the bank's infrastructure to support the bank's growing customer base. During this period the bank also experienced a 558% increase in its FDIC Insurance Assessment. This increase is attributed to the recently implemented FDIC Insurance Reform Act, which significantly impacted banks that were chartered after January 2001.

For the second quarter of 2007, net interest income totaled $1.7 million, representing a modest decline over the same period in the prior year. Interest income increased $248,000, or 12%, which was partly offset by an increase in interest expense of $265,000, or 60%. Interest expense increased due to the growth in deposits (predominantly interest-bearing), and the increase in interest rates on those deposits.

Earnings per basic share for the quarter ended June 30, 2007 were $0.10 compared to the earnings per basic share of $0.40 reported for the quarter ended June 30, 2006.

"Throughout the second quarter of 2007 the bank continued to take steps to expand its infrastructure and to hire additional personnel to support and expand its business development and loan growth strategies," said Kerry Pendergast, President and CEO of the bank. "During this period the bank launched its Small Business Administration (SBA) Lending Division, with a focus on deepening its product offerings, not only to the bank's existing customer base, but to potential banking clients within the Inland Empire marketplace.

"The bank also hired two Commercial Lending / Business Development Officers who have strong ties to the Inland Empire marketplace. We believe that we will begin to see the benefit from these additions to staff as we move into the third quarter of 2007. Additionally, the bank enjoys an expanding loan pipeline, during a period in which many of our peers are reporting an overall slow down in their lending activities. As in the past, we continue to focus on developing long-term relationships with our customers, which is essential to successful community banking," Pendergast said in closing.

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 continue 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.

See the following Financial Attachments:

Financial Data - Premier Service Bank
(Unaudited)
                                       Quarter Ended
                     -------------------------------------------------
(In Thousands)       June 30,  Mar. 31,  Dec. 31,  Sept. 30, June 30,
                       2007      2007      2006      2006      2006
-------------------- --------- ---------------------------------------

Interest income(not
 taxable equivalent) $  2,363  $  2,364  $  2,396  $  2,303  $  2,115
Interest expense          707       700       613       600       442
                     --------- --------- --------- --------- ---------
Net interest income     1,656     1,664     1,783     1,703     1,673
Provision for loan
 losses                    10         -        54        40        36
                     --------- --------- --------- --------- ---------
Net interest income
 after provision for
 loan losses            1,646     1,664     1,729     1,663     1,637
Non-interest income       178       140       153       167       137
Non-interest expense    1,656     1,607     1,483     1,457     1,365
                     --------- --------- --------- --------- ---------
Income before income
 taxes                    168       197       399       373       409
(Benefit)/Provision
 for income taxes          60        75       180      (126)      (75)
                     --------- --------- --------- --------- ---------
Net income           $    108  $    122  $    219  $    499  $    484
                     ========= ========= ========= ========= =========

                                       Quarter Ended
                     -------------------------------------------------
(In Thousands)       June 30,  Mar. 31,  Dec. 31,  Sept. 30, June 30,
                       2007      2007      2006      2006      2006
-------------------- --------- ---------------------------------------
Per share:
Net income - basic   $   0.10  $   0.10  $   0.18  $   0.41  $   0.40
Weighted average
 shares used in
 basic                  1,238     1,238     1,220     1,220     1,218
Book value at period
 end                 $   9.90  $   9.90  $   9.69  $   9.48  $   8.89
Ending shares           1,238     1,238     1,220     1,220     1,220


Balance Sheet - At
 Period-End
Cash and due from
 banks               $  7,789  $ 10,346  $  7,998  $  8,897  $  9,534
Investments and Fed
 fund sold             29,553    41,206    29,188    31,338    32,201
Gross Loans            97,262    92,579    95,785    94,540    86,886
   Deferred fees         (276)     (314)     (226)     (262)     (272)
   Allowance for
    loan losses        (1,075)   (1,085)   (1,105)   (1,051)   (1,010)
Net Loans              95,911    91,180    94,454    93,227    85,604
Other assets            5,440     5,253     5,313     5,480     5,234
                     --------- --------- --------- --------- ---------
     Total Assets    $138,693  $147,985  $136,953  $138,942  $132,573
                     ========= ========= ========= ========= =========

Non-interest-bearing
 deposits            $ 47,742  $ 49,055  $ 45,835  $ 48,132  $ 47,057
Interest-bearing
 deposits              77,872    86,117    78,663    78,587    74,137
Other liabilities         617       558       635       660       535
Shareholders' equity   12,462    12,255    11,820    11,563    10,844
                     --------- --------- --------- --------- ---------
     Total
      Liabilities
      and
      Shareholders'  $138,693  $147,985  $136,953  $138,942  $132,573
                     ========= ========= ========= ========= =========

Asset Quality &
 Capital - At
 Period-End
Non-accrual loans    $      -  $      -  $      -  $      -  $      -
Loans past due 90
 days or more             443  $      4  $     41    437.00         -
Other real estate
 owned                      -         -         -         -         -
                     --------- --------- --------- --------- ---------
Total non-performing
 assets              $    443  $      4  $     41  $ 437.00  $      -
                     ========= ========= ========= ========= =========

Allowance for losses
 to loans, gross          1.1%      1.2%      1.2%      1.1%      1.2%
Non-accrual loans to
 total loans, gross       N/A       N/A       N/A       N/A       N/A
Non-performing asset
 to total assets          N/A       N/A       N/A       N/A       N/A
Allowance for losses
 to non-performing
 loans                    N/A       N/A       N/A       N/A       N/A

Total capital to
 risk-adjusted
 assets                  12.5%     12.6%     12.2%     11.9%     12.2%
Tier one capital to
 risk-adjusted
 assets                  11.5%     11.5%     11.1%     10.9%     11.1%
Equity to average
 assets (leverage
 ratio)                   9.0%      8.6%      8.6%      8.7%      8.8%

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

Copyright 2007 BusinessWire

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