Press Release

The Private Bank of the Peninsula Releases Third Quarter Results

Company Release - 10/22/2009 3:21 PM ET

PALO ALTO, Calif.--(BUSINESS WIRE)-- The Private Bank of the Peninsula, a subsidiary of Peninsula Bank Holding Co., today announced its unaudited results for the third quarter of 2009.

"We are pleased to announce record earnings for the third quarter of 2009. However, these continue to be highly challenging times and we will work to position our Bank to persevere and grow under the current economic conditions," stated Mark D. Mordell, Chairman of the Board. "As a result, we plan to continue to grow deposits while underwriting loans very carefully and maintaining a high level of loan loss reserves."


Financial Results

In thousands (unaudited)

                       9/30/09   9/30/08   Increase  12/31/08  Increase

Assets                 $285,262  $229,367  24 %      $271,507  5 %

Loans                  $209,011  $187,206  12 %      $201,886  4 %

Deposits               $256,166  $204,913  25 %      $247,998  3 %

Shareholders' Equity*  $27,494   $23,688             $22,634

* The Shareholders' Equity balance includes the $6 million of TARP
funds that were received on January 30, 2009.




                     Quarter Ending  Quarter Ending  Year-to-Date  Year-to-Date

                     9/30/09         9/30/08         9/30/09       9/30/08

Net Income (Loss)    $561            $119            ($1,207)      ($582)

Earnings (Loss) Per  $0.22           $0.05           ($0.46)       ($0.27)
Share



"The Bank's core operations remain strong, allowing us to achieve profitability and further increase our loan loss reserves. Our healthy net interest margin and controlled expenses have been big contributors. We are well positioned to manage the Bank through these uncertain times," said Kenneth D. Brenner, the Bank's Chief Executive Officer.

About the Bank

The Private Bank of the Peninsula, a subsidiary of Peninsula Bank Holding Co. (OTCBB:PBKH), is headquartered in Palo Alto, California. The Private Bank focuses on the banking needs of businesses, entrepreneurs and business leaders, not-for-profit organizations and individuals in the greater San Francisco Bay Area. A true community bank with a team of veteran bankers, The Private Bank offers access to senior level decision-makers who are dedicated to helping clients with all their banking and financing needs. Personalized, responsive, exceptional service is The Private Bank of the Peninsula's standard.


    Source: The Private Bank of the Peninsula
Contact: The Private Bank of the Peninsula Steve Leen, 650-843-2204 Chief Financial Officer