October 2009

Dear Plaza Bank Customers,

As part of our periodic communication with valued customers, I would like to share news about our expanded customer services and the growth and vitality of Plaza Bank. Fueling the bank’s positive momentum during the past several months is our $23 million capital infusion by PB Holdings. We are further strengthened by our incoming Executive Management Team and Board of Directors, leadership that is providing the foundation and framework for strategic expansion, stability and a full array of customer services.

A Growing Bank to Serve Customers
In the past months, the bank has grown tremendously across a number of key benchmarks. Our total deposits have increased - by nearly 94 percent - in the past year. As of September 2009, deposits totaled $123 million. We’re opening new checking accounts at an accelerated rate this year compared to the previous year. As a result, our cost of funds has been reduced by 26 basis points and our interest expense has also decreased by $25,000 per month.

What all these high growth numbers mean for you, our customer, is that now, more than ever, Plaza Bank is a competitive, well funded and well managed resource for Orange County’s business communities.

Thriving Loan Portfolio and Asset-Based Lending Division
We are proud to report a significant jump – a 32 percent increase – in our loan portfolio. It expanded from $80 million, at the end of May 2009, to $106 million as of September 2009. Our newly launched Asset Based Lending program, part of our enhanced small business lending services, is now fully operational and focused on the future. It has garnered attention in the media and is well poised to complement our thriving SBA program. These will continue to serve as critical components for our support of the area’s entrepreneurs and small business owners.

Looking Ahead, Plaza Bank in the Community
In the months ahead, we are enthusiastic about the increased efficiency benefits of our technological investments, such as our new collateral monitoring software. Of equal importance is how our employees are playing a more visible role in the community. Look for Plaza Bankers, such as Senior Vice President Al De Grassi, in such community-based organizations as the Orange County United Way and Serving People in Need (SPIN) in Costa Mesa.

We welcome your feedback and will continue to keep you informed of the bank’s ongoing progress and programs for growth. While change is often exciting, be assured that our commitment to serving you, our customer, remains steadfast. It is how we are realizing our goal of being the bank of choice for Orange County’s business community. As always, feel free to contact me.

Best regards,

H.E. (Gene) Galloway
President, Plaza Bank