Press Release

The Private Bank of the Peninsula Releases Third Quarter Results

Company Release - 10/27/2008 1:23 PM ET

PALO ALTO, Calif.--(BUSINESS WIRE)--

The Private Bank of the Peninsula, a subsidiary of Peninsula Bank Holding Company (OTCBB:PBKH), today announced its unaudited results for the third quarter of 2008.

"We are pleased that we continue to meet our objectives of increasing our market share by growing deposits, loans and assets in a highly turbulent market," stated Mark D. Mordell, Chairman of the Board. "Ken Brenner and his team have done an excellent job in managing our net interest margin given the number and the magnitude of interest rate cuts thus far in 2008," Mordell added.

                          Financial Results
                       In thousands (unaudited)

                          9/30/08  9/30/07 Increase  12/31/07 Increase
                          -------  ------- --------  -------- --------

Assets                   $229,367 $173,817   32 %    $200,451   14 %
Loans                    $187,206 $129,586   44 %    $145,791   28 %
Deposits                 $204,913 $158,169   30 %    $184,217   11 %
Shareholders'
 Equity(1)                $23,688  $15,074            $15,581

(1) The 9/30/08 Shareholders' Equity balance includes the impact of
 the secondary stock offering concluded on 6/30/08 in which 690,800
 shares were issued and $8.6 million of capital was raised.
            Quarter Ending  Quarter Ending  Year-to-Date  Year-to-Date
               9/30/08         9/30/07        9/30/08       9/30/07
            --------------  --------------  ------------  ------------

Net Income
 (Loss)               $119            $217        ($582)          $579
Earnings
 (Loss)
 Per Share           $0.05           $0.12       ($0.27)         $0.31

"Our Bank had a profitable third quarter at a time when many financial institutions are experiencing difficulties," said Steve Leen, the Bank's Chief Financial Officer. "We achieved this while investing in infrastructure to enable us to make the most of our future opportunities."

The Private Bank of the Peninsula is headquartered in Palo Alto, California. The Private Bank focuses on the banking needs of small and medium sized businesses, entrepreneurs and business leaders, not-for-profit organizations and individuals within the communities it serves.

Source: The Private Bank of the Peninsula

Contact: The Private Bank of the Peninsula Steve Leen, 650-843-2204 Chief Financial Officer or Main Line: 650-843-2265 www.the-private-bank.com