Premier Service Bank Announces Third Quarter Results
October 15, 2004 12:52:00 PM ET

Today, Premier Service Bank PSBK, a California state-chartered bank with headquarters in Riverside, released the results of its operations for the quarter and nine months ended Sept. 30, 2004.

At Sept. 30, 2004, the bank reported total assets of $101 million, representing a 19% increase over the total reported for the prior quarter ended June 30, 2004. Deposits increased 19% over the total reported as of June 30, 2004, closing at $92.4 million. For the third quarter, loans grew to $52 million (prior to the allowance for loan loss reserves), representing a 17% increase over the total reported as of June 30, 2004. This increase in loans enabled the bank to continue to shift away from lower yielding investments, primarily Fed funds, and to re-employ those dollars in higher yielding loans.

When compared to the quarter ended Sept. 30, 2003, total assets had increased by 62% and deposits had increased by 65%. Total loans (prior to the allowance for loan loss reserves), when compared to the quarter ended Sept. 30, 2003, had increased by 92%.

For the quarter, the bank reported an operating profit of $123.4 thousand, representing a 291% improvement over the prior quarter loss of $64.5 thousand. Increased loan and loan fee income continued to serve as the catalyst for the bank's improving profitability picture. For the nine months ended Sept. 30, 2004, the bank is reporting an operating loss of $60 thousand, which represents a 486% decrease in loss, when compared to the $351.5 thousand loss reported at Sept. 30, 2003.

Within the quarter the bank successfully concluded the sale of over $2.2 million in additional common stock from the exercise of warrants issued as part of the bank's initial stock sale in 2001. "This additional capital will be used to continue to grow the bank and will positively impact the bank's legal lending limits, thereby allowing the bank to continue to be a competitive force within the markets it serves," said Kerry Pendergast, president and CEO of the bank. "For the remainder of the year we will continue to focus on building and growing the bank through our business development efforts, as well as capitalizing on the solid referrals so many of our customers and shareholders provide us," Pendergast said in closing.

Contact Information: Premier Service Bank Kerry L. Pendergast or F. Dean Fletcher, 951-274-2400

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