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Manufacturers Bank Reports 2012 Earnings

  Manufacturers Bank Reports 2012 Earnings

Business Wire

LOS ANGELES -- April 9, 2013

Manufacturers Bank (the Bank), a California commercial bank with total assets
of $2.2 billion, is a wholly owned subsidiary of Sumitomo Mitsui Banking
Corporation (SMBC), which in turn is a wholly owned subsidiary of Sumitomo
Mitsui Financial Group (SMFG). The Bank reported net income for the year ended
December 31, 2012 of $5.8 million compared to $3.7 million in 2011. Increased
earning assets and a modestly improved net interest margin resulted in
favorable year over year earnings performance.

The Bank maintained its strategic focus on loan growth in 2012. As of December
31, 2012, total loans were $1.33 billion, a $189.8 million or 16.7% increase
over year end 2011 total loans of $1.14 billion. Commercial and Industrial
loans totaled $767.1 million at December 31, 2012, an increase of $104.0
million over year end 2011, and represent 57.7% of the overall gross loan
portfolio. Real Estate loans totaled $535.1 million at December 31, 2012, an
increase of $88.9 million over year end 2011, and represent 40.3% of the
overall loan portfolio.

Credit quality remained sound through 2012. Credit quality is reflected in the
percentage of non-accrual loans to total loans at 0.94% as of December 31,
2012. The allowance for credit loss ratio remains satisfactory at 1.57% as of
December 31, 2012.

Capital remained strong as evidenced by Tier 1 and Total risk-based capital
ratios of 15.09% and 16.29%, respectively; both ratios exceed the minimum
requirements of a well-capitalized institution of 6% and 10%, respectively.

Message from Naresh Sheth, President & COO

Naresh Sheth, President and Chief Operating Officer, commented, "It is doubly
satisfying to report that the Bank not only continued to achieve exceptional
loan growth and earnings performance throughout 2012, but also announced its
first acquisition agreement. On November 29, 2012, we announced that the Bank
entered into a purchase and assumption agreement to transfer the deposits and
branch facility of National Bank of California’s full service branch office in
Glendale, California. The new branch commenced business on February 11, 2013.
We are excited about this opportunity to further entrench ourselves into the
Southern California marketplace.

"Our continued sound credit quality and strong financial strength could be
accomplished only because of our experienced senior management team, a core of
experienced bankers and our dedicated personnel. This has allowed our Bank to
maintain strong banking relationships with existing as well as many new
customers. We continue our dedication to supporting the traditional service
values of a financially strong and stable business bank by providing a full
array of excellent products and services in a timely, flexible and responsive
manner.

"We sincerely thank our customers for giving us an opportunity to serve them
for over 50 years and our staff for their dedication and valued service."

Manufacturers Bank has been operating mainly in Southern California,
consistently delivering tailored financial solutions that enhance the economic
well being of its middle market customers. Bauer Financial Inc., an
independent bank rating company, has awarded its highest depository rating,
Superior 5 Star, to Manufacturers Bank.

Manufacturers Bank is headquartered in Los Angeles and operates from branch
offices in Downtown Los Angeles, Little Tokyo, Beverly Hills, Encino, Warner
Center, Glendale, San Jose, City of Industry, Torrance, Newport Beach and
Ontario.

Member FDIC and SBA Preferred National Lender
Equal Opportunity Lender

All statements in this release, except for historical facts, should be
considered forward looking, including statements about the Bank’s plans,
goals, and future expectations for growth. Such statements are subject to
changes in the economic, legal and regulatory environment, changes in product
delivery and technology that may affect the Bank’s operations and continued
evolution in the financial services industry.

Contact:

Manufacturers Bank
Cindy Rude
VP, Marketing
213-489-6353
or
Karen Abajian
EVP, Chief Financial Officer
213-489-6478
 
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